3 year wait to close a mortgage post discharge date?

[budgetgal]

I filed for BK 3 years ago in June and discharge was end of October of 2011. I spoke to a finance person with a realtor and found out how much it looks like I will be approved for. I am waiting to have them pull credit reports because I don't want an inquiry to bring down my score until I'm sure I'm close to buying. I gave them my FICO scores I got from myfico.com just so they had an idea of where I was at with credit scores and also about my BK. She said I could get pre-approved in October and could put offers on homes but closing would have to wait until 3 years post discharge. With all the people getting mortgages sooner, I'm wondering if that is just a rule for certain lenders? Would love to hear your thoughts. I am hearing that Summer is a much better time to look in terms of inventory with people hoping to sell and get settled before the new school year starts. Also, are there certain lenders that are more BK friendly than others? I am in California.

[justbroke]

When shopping for home loans, you should really shop around! First, if this is an FHA loan, they do allow loans in as little as 1 year post bankruptcy under certain circumstances (Back to Work program). I would certainly not look to any Realtor as the most knowledgeable person when you need to obtain a mortgage. You should use a broker in most cases (or go through your local bank).

It is probably likely that you will use an FHA-guaranteed loan so you should be looking into FHA loans. There are many FHA brokers. Most banks have FHA programs, and there are non-local FHA lender-brokers. You need to shop, shop, shop. (FHA is traditionally 3 year wait for a foreclosure, and 2 years for a straight bankruptcy. FHA has modified the requirements due to the overwhelming housing issues.)

[budgetgal]

Thanks so much! I was looking for a new apartment and rents out here are now about the same or more than a $300,000 to $400,000 mortgage. Friends encouraged me to just talk to someone to see what I might be able to qualify for with my income. I had never even considered buying before! So I am very green. Sounds like just consulting with someone at my bank would be a good start. I am with Wells Fargo. I just don't want anyone doing an inquiry until I am sure this is what I am going to do. Just trying to save money, keep that FICO going up and get a plan. So grateful to even be considering buying just 3 years out. This forum has been a great support!

[LadyInTheRed]

Sounds like just consulting with someone at my bank would be a good start.

A better start would be to consult with an experienced mortgage broker who will be looking at many possible lenders. Just make it clear from the beginning that you don't want a credit check done until you are ready to start shopping. Don't sign any authorization to run a credit check until you are ready. If you fill out and sign any forms, read them carefully and make sure there is not an authorization.

[budgetgal]

Thanks! I really appreciate the input. I will post my experiences as I get a little further along in the process.

[TXskyblue]

I called around last month and everyone told me I needed 2 years. No one said 3 years.

[booknut]

Haven't had the chance to look around too much on here but I got an FHA mortgage 4.5 months out of Ch13. I received a letter from a small bank saying that they could do post13 mortgages and after they helped me clean up a couple credit issues. The rate I got was pretty good considering my credit and they really seemed to know their stuff. Not sure how they got it done but they said they do these nationwide. It was with Peoples Bank Mortgage and Frank (forgot his last name) was the guy that helped me his number was 843-606-6057.

[wendlan]

Booknut,is this a local bank in your area? I talked to my mortgage person and they said not until 2 years after bankruptcy discharge even if it is chapter 13. I am so angry right now, I specifically paid my chapter 13 off EARLY so it would be closed when I apply for a mortgage now they tell me I could have got the loan before the discharge NOT AFTER!

[booknut]

Wenlan, I never saw them although they have an office in the same state (they had a notary come to my house for signing!!). They said they have a whole dept that just deals with 13s and do these in all states. They did ask me tons of questions about late payments, foreclosures, etc. I researched there bank and they are a small bank from Mississippi. Guess this is there thing?

[wendlan]

I got the same letter in the mail today Peoples bank and Frank Linden works for the office in Mississippi. I talked to him,we should be eligible to close in Oct. on a mortgage! A few things and alot of paperwork first! Things are looking up! thanks booknut!

[booknut]

Wow. Crazy you got the same letter. Yep, tons of paperwork. Hpe they get it done for you!