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New Member
ladydiamond
Posts: 4
Registered: ‎04-22-2008

Purchasing 1st home after Chapter 7

I'm a member of myfico and I have learned so much from the forums. I have been trying to figure this out on my own and research but wanted to bounce this off of others.

 

OK, I recently, yes I said recently have been discharged from Chapter 7. I was discharged 2/20/09. I filed Chap7 because after I had done all I could...primarily I found my course of actions through the forum boards and Suze Orman...regarding letters to be sent out and clearing up the report as must as possible before I had to filed. The reason I filed was not due to my present persay, but my past...I was VERY unwise in college and racked up alot of debt with NO JOB and I just didnt know the first thing about handling credit. I wanted to pay but hit hard times so I was inconsistent. I learnt about credit AFTER  I had bad credit...like most eh? Last year, I guess when I started doing something about my report and clearing things...it was like the creditors had a meeting and decided to come after me...IT WAS OVERWHELMING...VERY. They file actions with the court and everything...I decided to file. And I'm not mad at all that I filed, just mad that I put myself in that situation.

 

Anyhoo, before I filed...i studied up on what I needed to do after I filed to IMMEDIATELY started building my credit. My scores where in the high 400 and low 500's at the time.....to date...about 4 months after my BK discharged...I am in the 600's...And should contine to rise because I am YET disputing things that should not be after my BK also my score should change as I begin to pay my student loans load down..WHOOHOOOO I am well on my way to a healthy credit file. It took a setback, but I'm making a come back...lol

 

My question, I want to take advantage of Pres. Obama's 8000 Tax Credit for Home Buyers, but I know for most it is recommended  to wait 2 years out from discharged....but I was wondering is there anyway around that? I am paying rent now...and would like to buy a home but I do not want to wait 2 years...although I will if i have to...because of my setback...plus i want the 8000 credit. I am saving up money like crazy and live wayyyyy below my means and I am gainfully employed for a few years now and now that I don't have people coming after me, I can really breathe well. Should I be thinking about a home now? The only bills I have are my rent, secured visa payment (which i pay off every month..Limit:$1000), i also have student loans coming out of deferrment for over 60,000. Should my loans and savings be my focus now?
"Discipline people are the ones who accomplish their goals"
Frequent Contributor
oldhack62
Posts: 284
Registered: ‎12-14-2008

Re: Purchasing 1st home after Chapter 7

[ Edited ]

ladydiamond wrote:

I...recently have been discharged from Chapter 7. I was discharged 2/20/09...but I know for most it is recommended  to wait 2 years out from discharged..I was wondering is there anyway around that?..


Not very likely. The 2-year, post-Chapter 7 wait isn't just a recommendation, in most cases it's a requirement. FHA, for example, has it written into their loan-guarantee guidelines. I believe USDA does NOT have such a requirement, but its loans are limited to certain, non-urban areas. Conventional lenders are more stringent, with many of them requiring at least 4 years post-discharge. Also keep in mind that regardless of whichever loan program you seek a loan guarantee from, virtually all underwriters are looking for a minimum of 12 consecutive months of good, on-time payments to 3-4 open 'trade lines' -- usually credit accounts. But, don't take my word for it -- check with some mortgage lenders/brokers. Good luck.

Message Edited by oldhack62 on 06-04-2009 04:54 PM
New Member
ladydiamond
Posts: 4
Registered: ‎04-22-2008

Re: Purchasing 1st home after Chapter 7

Thank you for the help! I appreciate it. I believe I'm going to go first time buyer counseling and see if they can further guide me on my options...if all fails...I'll hhold up and continue to build my credit up and pay down the loans...dones't hurt to ask.You mentioned a few trade lines....I'm a little nervous to go after more credit right now because of the recent BK...I was going to give it a year or so, before I apply for something else and just work with my secured credit card and student loans. I'll take a look into the additional trade lines a little more. Thanks again!
"Discipline people are the ones who accomplish their goals"
New Visitor
edouble79
Posts: 1
Registered: ‎03-05-2009

Re: Purchasing 1st home after Chapter 7

I have a chapter 7 from august of 2008 and it was due to my wife's job loss. Prior to that  I had a 20 year credit history with no lates.  Score was always above 750. I spoke with a local credit unions underwriter who will give me a loan this august 2009. They like a year from date of filing and you must have a uncontrollable circumstance that caused the bankruptcy and they will consider you. I have also had 9 previous home loans all in good standing which I think helped. Even with my bankruptcy my score never dropped below 600. So it is possible 1 year out to do it.

 

Good Luck !


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