Conventional loan (almost) 2-year post ch13 question

[JenR]

Hi all!

We were successfully discharged from a ch13 BK on 5/6/13. We're now looking to purchase a new home, with a 20% down payment. We want to go with a conventional loan, to avoid mortgage insurance.

The question I'm hoping that someone can answer or direct me to where I can find the answer (myself) is this: can we go INTO contract on a home just not CLOSE escrow until on/after our 2-year mark? Or do we need to wait to even open escrow until afterwards?

I'm getting somewhat unclear information from the "preferred lender" of the home builder (new construction) and I'm not sure if it's a situation where they're saying whatever they need to due to some sort of kickback or incentive.

Thanks in advance!

[katztoo]

We just refinanced our mortgage two years after chapter 13 discharge with Churchill mortgage. The BK had fallen off our credit report so we didn't even have to tell them we ever filed. (The application asked have you filed BK in the last seven years). They were great to deal with and we did it all through their website and it was 30 days application to closing. We went from a 6.76% to a 3.5% conventional loan (no points).
If you wait until after your two year mark (if you had a 5 year 13) all BK will fall off your credit report and you don't have to mention it and all the hassle that comes with that.

[mynameainttracy]

In our case we were so worried about getting approved we went through underwriting up front. It gave us the confidence to go under contract on a new construction that required a large deposit. We were nervous about handing over so much money with our past credit history. Lucky for us we made it through underwriting. That's the only way you can really know if your LO can't answer you. Put it in front of an underwriter.