buying a house after bk

[Anonymous]

How long after a ch 7 discharge did anyone try to buy a house?

[Scupra]

Recently got a soft approval at 2.5 years post d/c

[Metsfantransplant]

---

@Scupra wrote:

Recently got a soft approval at 2.5 years post d/c

---

Do you mind me asking you who got approved with? I'm hoping to start looking when I hit the 2 year mark next year and what I've read fha and Fannie Mae(or Freddie Mac, can't remember which one) will approve after two years with 3.5% down. 

[ezdriver]

FHA's waiting period is two years from discharge. Conventional is much more. Some portfolio lender will approve one year after discharge with a sufficiently larg down payment.

[Scupra]

I was dealing with a mortgage broker.. Like ez stated you can get an FHA loan 2 years post d/c with 3.5% down.

[PlasticOrPlastic]

I just bought a house 4 years out of BK, I started the process at 2 years out but there was to much required down and my rates were to high.  I put nothing but a 6k grant down, got a 2.99% rate and brought $0 to closing.  I'm glad I waited the terms were much more favorable than at my 2 year mark. 

[StartingOver10]

The rules changed either in 2013 or 2014, I forgot which year. Now it is as EZ states - 2 years post discharge for a FHA loan. The requirements are 3.5% down payment and you can either pay your own closing costs or negotiate with the seller to pay all of your closing costs and pre-paid expenses up to a max of 6% of the purchase price. Normally 4% (approx) of the purchase price is enough to cover your closing costs and pre-paids. The interest rate is the prevailing rate - not higher.  The lender can pick up some of your cc & pp's but in order to do that they need to charge you a slightly higher rate (similar to the Navy Fed program).

But PlasticOrPlastic has a good point. You want to be in good financial shape and not teetering on the edge to buy. It makes the process much less stressful.