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Bankrupstcy and down payment assistance

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Bankrupstcy and down payment assistance

Does a chap 7 disqualify me from receiving any downpayment assistance years after discharge? Ive heard there are grants etc, but i cant find any info about if its any different for those of us that are trying to prepare to buy after bankruptcy

It is my first home purchase, i didnt let a house go or anything in my bankruptcy if that matters.
Chap 7 discharged 12/2018
Car loan 12/2018 Refinanced 8/2019
Capital one QS 750 1/2019
NFCU Nrewards 2k 2/2019

CURRENT FICO9 Equifax 695

Hubby is on same car loan and Chap 7
Capital 1 platinum 500 1/2019
NFCU Nrewards 2k 1/2019

CURRENT FICO9 Equifax 627 (just updated 10/16)
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Established Contributor

Re: Bankrupstcy and down payment assistance

Providers of DPA funds typically do not have any stipulation regarding your past credit history.  Many will require you to be a first time home buyer though, but check with the organization or institution that is providing those funds as they are the gate-keepers and rule makers when it comes down to that.

 

You will need to wait 2 years from the discharge date of your CH. 7 before you are eligible for an FHA loan to purchase a home however, so keep that in mind.

 

 

__________________________________________________

Licensed NC Mortgage Loan Originator
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Established Contributor

Re: Bankrupstcy and down payment assistance

Hello DisneyMom,

 

There are no additonal requirements regarding the BK for a DPA. You are good to go after the required waiting periods. Here is a quick rundown.

 

  • NonQM/Portfolio – 1 day after BK, Short Sale, Foreclosure. These loans are100% credit score driven. They do have higher rates and fees and down payment. These programs can be viable way to enter the housing market as long as you have an exit strategy.
  • VA – 2 years unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 1 year. Under the extenuating circumstances waiver, you will need to provide appropriate documentation to support your hardship.
  • FHA – 2 years unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 1 year. Under the extenuating circumstances waiver, you will need to provide appropriate documentation to support your hardship.
  • USDA Rural Development Loan – 3 years, unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 1 year.
  • Conventional – 4 years, unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 2 years

 

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