Question about home purchase while in Ch13

[goon]

So I have read a number of posts on here about people being able to purchase a home and get a loan while in a CH13. My question is has anyone specifically heard of this happening for someone that surrendered a house (foreclosure) as part of their ch13? I am assuming that this would just come down to finding a lender that was willing to go for it, but I guess I am trying to figure out A. if it is even worth looking and B. if anyone knows of specifics of this happening ( ie what lender, or special things that had to be done)

The details are I am about 2 years into my 5 year plan, gave up house and have been renting (have actually been renting since before the bk, the house I gave up I was trying to rent out myself). I may be moving out of state soon and in the area I may be moving to if I could buy something, payments for a comparable home would be like 200-500 a month less than renting....

Thanks in advance...

[lrprn]

Even though a few of our forum members have successfully purchased a home during an active Ch 13 under unusual circumstances, in reality it's quite rare. Since most lenders expect a sizeable downpayment these days under the best of circumstances and Ch 13 eats up almost all your disposable income for 3-5 long years, it's very difficult for someone in a 13 to amass enough cash to put 15-20% down on a new house.

Just curious....how did you calculate that owning a house would cost less than renting? The monthly house payment might be less than a rental, but the upkeep and repairs required by a house will almost certainly overwhelm any small differences between the payments over time.

[goon]

ouch, yea 15%-20% down would be hard to come by I was thinking that they were still doing 3%-5% (which sadly isn't that much more than first, last, security deposit)

I have been watching what is available and prices for both rentals and homes in the area that I would potentially be moving to. Looking at 3-4 bedroom homes ( I have a family of 5 ).
Rent for anything decent in the area seems to be between $1100 and $1500 a month
But there are a number of decent homes available in the $150,000-$200,000 range
a $150k house at 3% down and 4% interest (I think this was the rate someone on here had gotten)
The payment would be about $695 P&I, or right around $925 including PMI, Taxes, Insurance.
And a couple of the houses that I see listed at $150k are equivalent to the $1300-$1400 month rental range
I am aware of the upkeep costs and what not, I had owned 2 houses over a total of about 10 years, (one of them was built in 1960 and was high maintenance)
I am able to do just about any necessary work myself, and am VERY good at finding deals on craigslist, I was able to keep my maintenance costs down considerably.

If I had to come up with 15-20% it wouldn't happen (without some kind of family help), but 3-5% is what I was thinking... maybe just wishful thinking... which I could do (especially since I have been able to keep my sizable tax refunds). I just hate the idea of continuing to rent especially when both home prices and interest rates are so low but maybe it is just not meant to be

[goon]

To add additional perspective to it the homes that are renting for $1100 are going for around $120k-$130k

[Carter]

I was told by a lender that I could go FHA 3 yrs after a foreclosure and during a chapter 13 with 1 yr ontime payments to the trustee. You do have to obtain permission from the trustee however. Oh and with FHA your credit score has to be a minimum 640. I never went through with getting the permission from the trustee as my lawyer advised me to just wait until my discharge because we don't want to make any waves with the chapt 13. my lawyer said there will be great deals out there for a few yrs. I have a few more months to go and can't wait! It's been a long 5 yrs in the bk. Good Luck to you!

[goon]

Thanks for some additional information, I am only just under 2 years in to the ch13 (been about a year and a half since the foreclosure actually happened), so it is definitely looking like I will be renting for a while longer at least.