Mortgage After BK 7

[Anonymous]

Good afternoon,

My wife and I are looking to puchase a new home.  She has 5 star credit but her income level is sufficently lower than mine.  I will only be one year past discharge of my chp 7 on the 14th of this month.  How far past bk do I have to be to add my name to a loan and what kind of loan would that be?  Is there a way we can add my income if she applies alone?  

Thanks for your responses. 

[Anonymous]

You cannot add or remove a person to a loan like you can with title. The only way to change the names on the loan itself is to refinance. An FHA loan has the shortest waiting period post-BK at two years from the discharge date. If you need your income to qualify, you will have to wait another year. If her income is enough to qualify, only she can be on the loan but you can add yourself to title.

[cem13]

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@Anonymous wrote:

You cannot add or remove a person to a loan like you can with title. The only way to change the names on the loan itself is to refinance. An FHA loan has the shortest waiting period post-BK at two years from the discharge date. If you need your income to qualify, you will have to wait another year. If her income is enough to qualify, only she can be on the loan but you can add yourself to title.

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Agreed.

I did an FHA loan 4 years after BK7 filing.  The LO told me that they routinely give mortgages 2 years after BK7 DC and in some cases; 1 year.  The 1 year after BK7 is rare and must have speical circumstances on why the BK7 was filed.  An example would be large, unexpected medical bills such as a major car accident etc.

In my case they took the middle score for me (705) and DW (699) and averaged them to get a combined average middle score of 702.

1) Wait 2 years post DC for you to be approved 

2) Loan in her name only if she qualifies

You might want to visit a Mortgage Broker and explain your situation and see if they can do something for you.  It will not cost you anything but an hour of your time.

Good luck and keep us posted