Home purchase during Chapter 13?

[BubbaGump]

I've been paying on a Chapter 13 plan for about 18 months, no late payments, every other debt (including rent) on time with no delinquencies since the bk was filed.

I've heard unsubstantiated rumor that it's possible to secure a loan for purchase of a home during Chapter 13, but a few lenders I've spoken to have been unable to assist. We have the money for a modest down payment, maybe 10% but certainly not more.

Does anybody have any lenders that can be recommended to pursue this, or am I just plain screwed?

We're in such a bad situation with our rental, are hesitant to bother trying to find another rental, and have an opportunity to get into a home for the same price as the rental (provided somebody can give us a mortgage). Are there any other options, like getting the current owner to finance the loan or anything similar that anybody can recommend as an alternative?

[HHM]

You will need to find a mortgage broker and one who is familiar with working with BK clients, your attorney might know someone so get in touch with your attorney. You will need to get in touch with your attorney anyway because you will need to get permission from the Court and Bk Trustee.

I am not really sure on the ability to purchase. I know you CAN refi a mortgage after 1 year of good payments in a chapter 13. http://methnerlaw.com/2010/08/31/can...13-bankruptcy/ That post mentions the requirements to refi, but I don't know if the same rules apply for a purchase.

[987654]

There have a been a few threads in recent months about getting a FHA mortgage 2 years into a Ch 13. Also if you google "FHA Loans in Chapter 13" you will find other websites referencing that you need to be 2 years into your plan, history of being on time with plan payments, and a credit score of 620 or above. Of course, the real catch here is finding a bank to finance you. And you would need to get trustee approval to take on debt while in Ch 13, and he may want to know how you were able to save a 10% down payment under the plan if all your DMI is going to needed expenses. I'm not trying to scare you, just preparing you for what may be the unexpected.