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buying a house one year after bankruptcy discharge

westvirginia
New Visitor

buying a house one year after bankruptcy discharge

will i have any luck with any bank out there for buying my home? any recommendations on banks who are willing to give a second chance?

Message 1 of 10
9 REPLIES 9
Newstart2018
Valued Member

Re: buying a house one year after bankruptcy discharge

My understanding is that absolutely no one will consider you for a home loan until at least 2 years post discharge!

Good luck though. Maybe someone somehow had a different outcome.
BK 7 Filed: 2/13/18
Discharged: 5/17/18

CreditOne: $400
Message 2 of 10
leonel9
Frequent Contributor

Re: buying a house one year after bankruptcy discharge

You must wait 2 years post discharge for an FHA or VA loan; 4 years post discharge for a conventional loan. 

 

What does this mean? Unless you are a veteran, you need to wait 2 years after discharge to qualify for an FHA loan. Your other option is a portfolio lender, which is likely to ask for 30% down and offer rates between 7-8%. 

Message 3 of 10
JoeFriday
Regular Contributor

Re: buying a house one year after bankruptcy discharge

These answers all assume a CH7 bankruptcy. The answers will be different if it's CH13.

Began 5/17/17
EQ 621
TU 577
EX 608

Current FICO 8
EQ 767
TU 775
EX 728 - FINALLY ALL ABOVE 700!
Message 4 of 10
NowGettinBetter
Established Member

Re: buying a house one year after bankruptcy discharge

So what would it be for Chapter 13?  I was just discharged 11/17.

Message 5 of 10
JoeFriday
Regular Contributor

Re: buying a house one year after bankruptcy discharge

Depends a little on what loan program...

 

FHA/VA only requires one year of on-time payments to the trustee (and approval by the trustee). Which means little more than 1 year after filing, and 4 years before discharge. After the CH13 is discharged, there is no wait required by law. But many underwriters will have their own waiting period, so there is no guarantee.

 

USDA basically follows FHA guidelines, depending on who you ask.

 

Conventional loans are the most restrictive. They require a two year wait after discharge. Altho I personally wonder if a borrower would be held to that if their credit reports are cleared of the BK before the two years are done.

Began 5/17/17
EQ 621
TU 577
EX 608

Current FICO 8
EQ 767
TU 775
EX 728 - FINALLY ALL ABOVE 700!
Message 6 of 10
NowGettinBetter
Established Member

Re: buying a house one year after bankruptcy discharge

Thanks

Message 7 of 10
westvirginia
New Visitor

Re: buying a house one year after bankruptcy discharge

It wasn’t due to foreclosure or the lack of paying my bills. It was mostly medical bills and credit cards trying to survive while getting better so I could get back on my feet.
Message 8 of 10
westvirginia
New Visitor

Re: buying a house one year after bankruptcy discharge

No mine was chapter 7. I actually own my own still and make my payments. My goal is to sell my current home and buy something different. So I would have a good size down payment. Money sometimes does a lot of talking lol (unfortunately)
Message 9 of 10
westvirginia
New Visitor

Re: buying a house one year after bankruptcy discharge

Mine is chapter 7.
Message 10 of 10
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