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HOW LONG BEFORE I CAN BUY A HOUSE?

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New Visitor

HOW LONG BEFORE I CAN BUY A HOUSE?

My Ch 7 BK was discharged on 2/19.  My FICO score is a crappy 600.  Does anyone know how long it takes before you can buy a house?  Is it based on the credit score or length of time after BK discharge?  Thanks in advance!

11 REPLIES
New Contributor

Re: HOW LONG BEFORE I CAN BUY A HOUSE?

If you did not give up a house in the BK than you can get a FHA loan 2 years after discharge with a minimum FICO of 620 or above.  Conventional is even longer.  I have heard if you meet the income and area requirements you can get USDA sooner than the 2 year mark.  Hopefully one of the experts will chime in.
2/25/09 Transunion-698, Equifax-666
9 Months After BK
New Visitor

Re: HOW LONG BEFORE I CAN BUY A HOUSE?

Thankyou very much!!!
Regular Contributor

Re: HOW LONG BEFORE I CAN BUY A HOUSE?

That is wrong information about FHA.  My husband and I are 5 months discharged from a Chapter 13 bankruptcy and we are working with a lender for FHA refinancing.  It is 2 years from discharge for a conventional loan.  You do need a minimum score of 620 though.

New Contributor

Re: HOW LONG BEFORE I CAN BUY A HOUSE?

The OP filled Chapter 7 not chapter 13 and the info I provided was from an FHA rep, HUD website, as well as 2 underwriters.
2/25/09 Transunion-698, Equifax-666
9 Months After BK
Frequent Contributor

Re: HOW LONG BEFORE I CAN BUY A HOUSE?

Right. With chapter 13 you can apply the day after discharge. With chapter 7 you have to wait 2 years.

 

With either, if there was a foreclosure, deed-in-lieu, or short sale, you have to wait 3 years from when the property transfers.

Member

Re: HOW LONG BEFORE I CAN BUY A HOUSE?

Well, my wife and I heard that you can buy a house right after a discharge with a USDA loan. It's called a USDA Streamline loan and you have to have a minimum of 620. Is that not true?
Moderator Emeritus

Re: HOW LONG BEFORE I CAN BUY A HOUSE?

I'm not very familiar with the USDA loan, but I do know you can quickly check to see if you might qualify at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do .  Hope the info there is helpful! --  I didn't qualify ;(.
Just puttin' syrup on something, don't make it pancakes.
Frequent Contributor

Re: HOW LONG BEFORE I CAN BUY A HOUSE?

It is potentially true, but I think you would have to have some truly exceptional circumstances. I believe most lenders will want you to be at least 12 months out, in the current environment. However there is definitely more flexibility with USDA than with FHA. Also, you do need to make sure that your location and income qualify.
New Member

Re: HOW LONG BEFORE I CAN BUY A HOUSE?

Hey! We filed bankruptcy in 2010. For FHA it's 2 years, USDA is 3 years, and Conventional is 4 years. They do make exceptions sometime's based on the circumstances. But that's the basic rule.