My family went through some difficult times about two years ago when our boy got quite sick. We got into money trouble and ended up declaring bankruptcy (chapter 13, I think). We assumed we wouldn't be able to buy a house for quite some time because we heard a bankruptcy stays on your permanent records for seven or ten years.

My question is whether or not this is accurate? Or, is it possible to somehow buy a home anyway? I make pretty good money and we'd like to get our own place soon instead of having to wait ten years.

Thanks in advance

Yes, it is very possible for you to obtain a home 1 day out of a bankruptcy. You ideally would wait 2 years to get FHA or Conforming financing which are the best interest rates.

You do need to re-establish yourself by opening some new credit. Also you should pull your credit report to make sure the items that were discharged through your bankruptcy are reflected accurately on your credit report. If not you will need to file a credit dispute with all 3 credit repositories. I have posted direct numbers in another topic for everyone.

Ideally you would have a 12-24 month payment history on a debt before you would be approved 1 day out of bankruptcy. Some actually add themselves to a friend’s credit card as an authorized signer. You then would pick up the history on that card but it is risky because they could default and you could be held liable for something you did not even use. I do not recommend it.

A secured credit card is ideal for this. It is a high rate of interest but the limit is usually very manageable. About 300. You deposit 300 of your own funds to secure the card.

If you re-affirmed and kept a debt after your 13 was satisfied then that helps too.

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Greg Phillips
Manager
Fairfield Mortgage Company
"I can lend in 50 states"
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