You can use the IRA or best case; take a loan from the Ira so that you don't pay penalty. If your Ira allows it you can take a loan that doesn't count against your DTI; since its a secured loan.
FICO 9: 
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.
Goal: Gardening!
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.
Goal: Gardening!
@luvmeirahbug wrote:
Thanks for the info, although I'm sure about the time. 2 years after discharge applies to Ch. 7 filers. Ch.13 filers only need 12 months of on-time trustee payments or discharge. The only reason I've waited this long is because I didn't want to jump through the hoops I had to deal with to buy a car while I was making Trustee payments. I am finished my plan so I'm not worried about that part, just whether my financials would qualify when counting down payment plus reserves. Not sure whether I'd be required to use a portion of my IRA with DPA. I don't know my middle score because I only have MY EQ FICO score. I'm going for it so wish me luck. l will update later.
Actually, chapter 7 typically requires 4 years. Most lenders will count 80-90% of your total IRA account as usable towards the down payment to account for any institutional fees when withdrawing funds early.
Staring Scores:Transunion-636 Equifax-618 Experian- 640 (8/12): 
@MyCreditSucksTheMost wrote:
@luvmeirahbug wrote:
Thanks for the info, although I'm sure about the time. 2 years after discharge applies to Ch. 7 filers. Ch.13 filers only need 12 months of on-time trustee payments or discharge. The only reason I've waited this long is because I didn't want to jump through the hoops I had to deal with to buy a car while I was making Trustee payments. I am finished my plan so I'm not worried about that part, just whether my financials would qualify when counting down payment plus reserves. Not sure whether I'd be required to use a portion of my IRA with DPA. I don't know my middle score because I only have MY EQ FICO score. I'm going for it so wish me luck. l will update later.Actually, chapter 7 typically requires 4 years. Most lenders will count 80-90% of your total IRA account as usable towards the down payment to account for any institutional fees when withdrawing funds early.
4 years for conventional loans..2 years for FHA loans.
@nineironkitty wrote:I'm also currently in CH13, halfway through. Every mortgage company I've talked to says I have to be halfway through and NOT discharged or they will treat it as a CH7 and make me wait an additional 2 years before getting mortgage approval. I'm trying to get my scores up to 640 as that is the minimum any underwriter will do for an FHA mortgage. Downpayment doesn't matter I need my score above 640. Currently at 636, 583, and 629. I just opened a secured credit card with a $500, hoping that will help kick my credit score up in a couple of months.
That's interesting..never heard of the halfway through thing before. Are you referring to a FHA or conventional loan? There's a link on one of these threads for the time requirements for FHA loans after BK. I know conventional loans require 4 years period. I'll have to find that link and post it here. The secured card should really do wonders as long as u treat it like an unsecured card (low util, pif, etc). It's worked wonders for me so far.