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Member
Woeasmee
Posts: 7
Registered: ‎06-28-2013

Need a mortgage after Chapter 7

[ Edited ]
Hi everyone, I will try and be as thorough as possible when describing my situation.

I filed for chapter 7 on mar 2012 and was discharged in June 2012. The bankruptcy was due to high credit card debt along with some medical bills, all compounded by a 9 month layoff.

My current bills on my CR are:
I kept my home as we were low enough financially to qualify it as an exemption, we've made monthly on time payments on our own to our bank, $434 monthly, @7.25 apr, 49K balance, home valued at 90K.
I kept my vehicle, it was not reaffirmed, 277 monthly @ 11% apr, I just refinanced this Cap 1 auto loan, thru NFCU @ 2.49 x 24 months $170 monthly, 4K balance, we plan to pay this loan off by June 2014.
I also have a $165 student loan, over 20 k still owed, loan is current and will remain current.
Finally I pay child support $ 424 monthly.

We intend on keeping our current home in TN, it's family land, so we will not sell. We did not have any type of FHA, VA, or any other type of loan.

I am a 50% disabled veteran, and my current income from wages and compensation is 86000 yearly, approximately 7150 monthly.

I have been in my current employment for 1 year, in the same field for over 10 years. The likely hood of losing my employment is slim to none.

I am currently paying $1200 monthly to rent a home for my family near charleston,sc.

I also have $4000 in savings, and about $5000 at my disposal thru my TSP.

My current Fico Equifax is 656, Faco TU 632, Ex 623

I have 3 credit cards which I payoff completely before credit bureau reporting day, CL are $1000, 500, and 1000.

How likely will I be able to qualify for a 150k - 180k mortgage, after June 2014, 2 year anniversary of my Chapter 7 discharge date?
Any help,tips or information will be greatly appreciated.
BK Chapter7 Discharged 6/2012
CU Rewards Secured 1000, CU Cash Rewards 500, Cap 1 Platinum 1000

Starting Score: 643
Current Score: 658
Goal Score: 700

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Member
Woeasmee
Posts: 7
Registered: ‎06-28-2013

Re: Need a mortgage after Chapter 7

Hi everyone, any help will be appreciated
BK Chapter7 Discharged 6/2012
CU Rewards Secured 1000, CU Cash Rewards 500, Cap 1 Platinum 1000

Starting Score: 643
Current Score: 658
Goal Score: 700

Take the myFICO Fitness Challenge


Frequent Contributor
austinguy907
Posts: 287
Registered: ‎03-03-2008

Re: Need a mortgage after Chapter 7

typically a lender won't touch you until you have 24 months post BK discharge.  don't let this deter you though from making the move down the road.

 

my game plan from what you have posted right now.

 

1. keep making your payments

2. build some cash reserves if possible (3-6 mo's of bills)

3. check into some CU's for secured CC's for at least 2 accounts to report payment history leading into your mortgage 

4. with the 9K you have currently you're right on target for ~170K DP of 5% which is fine for conventional + PMI

 

otherwise you're off to a good start :smileyhappy:  when it comes time you should check out http://www.monitorbankrates.com/mortgages to evaluate your options.

Scores by lender CLI requests 4/15/14: EQ 760 / TU 755 / EX
------------------------------------------------------------------------------------
Scores by lender 4/25/11: EQ 705 / EX 743 / TU 735
Mortgage closed 5/20/2011!

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