USDA Loan after chapter 7.

[Anonymous]

My discharge date is today and hope to recieve my discharge soon, I am wanting to buy a house next year and I'm curious to know what "extenuating circumstances" mean?

USDA loans exist for borrowers who are interested in purchasing a home in a rural community. USDA loans offer low interest rates as well as a no down payment option. The waiting period for USDA loans is three years after your chapter 7 discharge. Although you can qualify as soon as 12 months after your discharge if you can prove extenuating circumstances that led to your bankruptcy filing.

[Mjhall85]

Congrats on the discharge here soon! As far as getting the USDA loan. This is from the USDA may consider loss of a job, delay or reduction in government benefits or other loss of documented income, increased expense due to illness or death. Surely have to have the credit as well to qualify. I am sure it's really a case by case basis to get approved in the the shorter term.

[Anonymous]

Hmm, so if I have proof that me and my whole team got laid off and I had to find a job that paid 40% less and file due to that do you think it should be enough?

[Mjhall85]

I wish I could give you that answer but I would say you got a shot, never hurts to ask and see what happens.Worse case they say no and then have to wait either a year for a FHA if you qualify or a conventional.

[Anonymous]

I think I have a good shot especially if I have paperwork stating my position was eliminated and there was nothing I could do about it.

[Mjhall85]

I'd agree with you. Get a decently strong rebuild in the next year and you got a shot. I just started on my rebuild. Luckily most my scores are half way decent for a BK on file.Hopefully two years can get a mortgage.

[Anonymous]

I already have an established loan and a credit card prior to my discharge so I'm well on my way to a rebuild.