Getting a Home Loan 1 yr after Bankruptcy

[Anonymous]

I had a CH 7 Bankruptcy that was discharged about a year ago.  Since then, I have not had any late payments or collection.  My balance on my revolving account is $0.00 of $7,000+.  I have a 23K student loan and a 72K income.  My BK was filed due to six months of unemployment and a medical bill that was passed on to me from a relative I was a guidance of.  I am currently in the military (Iraq vet).  Current credit scores are 638, 658, 602.  Where can I get a mortgage in the State of Indiana for a 200K new home less than two years after a BK?  I have looked everywhere and I keep getting turn down because of the BK.  Please help.

[DallasLoanGuy]

most do not understand that fha will do it after one yr with exception to the 2yr rule.

must be proven as beyond your control.

[Anonymous]

Does 6 months of unemployment and looking for a job qualifies is extenuating circumstances?  I keep hearing that it has to be some death or terminal illness to the primary earner.

[DallasLoanGuy]

if you could prove that the unemployment didnt cause it directly and that the medical did.... then maybe.

 it would be a manual underwrite with a strong letter explaining circumstances around family member.

very iffy

usda might do it.

[Anonymous]

Does USDA has a purchase limit on home?  I live in Indiana and I'm trying to buy a home that cost 200K.

[Anonymous]

I live in Indiana and am going through the usda. They do have a limit on the amount you can borrow if you go through the direct. It depends on your county. I'm not sure if there is a limit if you are going through the guaranteed program, but i would'nt think so.

[rockymtngrl]

For USDA you have to live in a somehwhat rural area and your household income has to fall within thier guidelines. There is not a limit on the purchase price but it does have to be a modest house, so it would probably depend on your area if 200k is modest or not.

As for USDA and ch7 less than 2 years I think its a crap shoot myself. I have seen a couple of people get approved with less then 2 years but just as many that were not approved. We talked to a couple of brokers at less then 2 years to see about getting approved for USDA. We were told we would have a better shot at getting approved with FHA (we did fall into the exception of less then 2 years with an accident of the primary wage earner, unable to work for almost a year with zero income and major medical bills). One broker talked with the USDA underwriter and was told we would not be approved and another broker told us we had a 50/50 shot with usda, but did'nt think we'd have any problems with FHA. Both told us we shold be fine after the 2 year mark with USDA. So we waited and are at almost 3 years now and are getting ready to apply.

[Anonymous]

Here is the exact language from the FHA guidelines "Elapsed period of less than two years, but not less than 12 months if you can show that the bankruptcy was caused by extenuating circumstances beyond your control and you have since exhibited a documented ability to manage your financial affairs in a responsible manner"

[Anonymous]

VA is a good option for you then, no money down and they will consider a year after discharge

[Anonymous]

Do you think there could be extreme circumstances when it comes to a foreclosure?  i foreclosed last june, i used to work for a title co and it slowed down and i was laid off.  i started working odd jobs to keep the lights on and when i couldnt handle it I put the house up for sale.  Now my realtor assured me it would sell as a short sale w/in 90 days.  she lied, didnt come to show the house (just handed out keys) she brought a parade of families through on moving day.  She didnt hand in a cash offer or report any verbal offers to the bank.  To top it off she left the firm w/o notifying me or having me sign off on any paperwork.  One day I got papers about an auction to be held on the courtsteps and thats when I found out she was no longer with REMAX for the last two months...news to me.

Am I out of luck for the next 18 months or do I have a chance to bite into the market with an FHA loan.  If I didnt believe in karma I would have had her ass fired...lol!!