It has been 2 years after discharge but I also have a foreclosure included as part od the whole deal after divorce, is it possible for me to get a home loan? transunion score 673, thanks!

In virtually all current cases, the wait following a foreclosure will be a minimum of 3 years -- with the clock starting when the deed transferred away from your name, which likely is (much?) later than the onset of foreclosure proceedings.

USDA Rural Development loan is a good option if you live in a qualified area and meet the income guidelines.   I would check it out.  We just bought a home and our chapter 7 BK was discharged in March 2007 and our home was also included.  Mid score for us was 683, so things went smoother.  I believe if your score is above 660, they look past most previous credit problems.  Good luck!

TLM,

Is there a waiting period after a BK7 discharge until you can apply for the USDA loan? I live in a very rural area of South Dakota and my income level would qualify me for the direct loan. My discharge was Sept or Oct of 07.

Another question: When speaking of how long one must wait after a BK to get a home loan, are these numbers presuming a 20% downpayment?  If not, how long should one (we, in this case) expect to have to wait before being able to get a loan? 

We'd put at least 20% down on any home we'd buy.

Thanks in advance!  Love this site!

FHA WILL insure loans prior to the 3-year proviso regarding foreclosure if you can prove 'extenuating circumstances beyond borrower's control' -- and it HAS BEEN successfully argued that being forced to include the home in a bankruptcy qualifies at that extenuating circumstance. However, such claims are more often denied than accepted, and depend a lot on the reason for the bankruptcy filing. Otherwise, USDA is probably your best bet, but the home itself must be in a qualifying area. The 20% down payment will strengthen your file regarding other borderline qualification issues, but it won't cause regulations to be tossed out.