Buying a House After a Bankruptcy
| Buying a House After | Fannie Mae Loan | Freddie Mac Loan | FHA Loan | VA Loan | USDA Rural Loan | Jumbo Loans |
| CH. 7 Bankruptcy | 4 Years from discharge or dismissal date | 4 Years from discharge or dismissal date | 2 Years from discharge date | 2 Years from discharge date | 3 Years from discharge date | 4-7 Years from completion date |
| CH. 13 Bankruptcy | 2 Years from discharge date 4 Years from dismissal date |
2 Years from discharge date | 1 Year of the payout must elapse & payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage | 1 Year of the payout must elapse & payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage | 1 Year of the payout must elapse & payment performance must be satisfactory; buyer must receive permission from the court to enter into a mortgage | 4-7 Years from completion date |
* JUMBO waiting periods vary by lender * Waiting period time frames may be less in situations with extenuating circumstance
* For LTV’s greater than 80% – mortgage insurance guidelines may differ
Special Note LTV = Loan to Home Value Ratio
Buying a house after a bankruptcy should not be as time consuming or as difficult as going through the bankruptcy itself. During your bankruptcy process you had a professional who knew how to prepare your case and they walked you through the steps involved in finalizing your bankruptcy. The process involved with buying a house after your bankruptcy will be easier and not as stressful if you work with an experienced mortgage professional and not try it on your own.
As you can see from the chart above, in addition to re-establishing yourself for obtaining a mortgage and buying a house again you will need to know what programs fit your current situation and which to concentrate your efforts towards. Depending on whether your bankruptcy was a Chapter 7 or a Chapter 13 will determine guidelines, waiting periods, down payments, and max loan amounts within different programs. An experienced and knowledgeable mortgage professional will not be able to determine the best mortgage program for you until reviewing your current credit situation and learning your goals. From looking at the chart you can see there are different dates and factors involved with the waiting periods of individual mortgage programs and keep in mind the guidelines can change frequently in today’s market.
When beginning to develop a plan for buying a house after a bankruptcy, we will work together to:
- Develop a timeline based on the date your of you bankruptcy.
- Review your current credit report and look at a plan of action to increase scores.
- Discuss your home buying goals and how to get there from your current situation.
- Identify a mortgage program that will best fit your goals and review the guidelines and down payment levels to achieve approval when your waiting period is over.
- Have your personal profile mortgage lender ready for buying a house after your waiting period.
You should read the page on this site titled “Need to know about credit” that has some great reminders. Also read the page “my story” which will give you a better idea of my experience, knowledge, and background in the Arizona mortgage industry. On the home page of my main site, www.kellyzitlow.com, you will find a tab “Credit Analysis”. For a small fee you can obtain your credit consultation report from Advantage Credit, Inc. containing your score range and tips for improvement. On either of my sites, you can select to receive Arizona mortgage market updates, special news, and quarterly newsletters to be better informed during your waiting period by simply filling out the “connect with me” form.
My goal for starting, “buying a house after” bankruptcy, is to share mortgage expertise, give credit profile direction, and assist clients buying a house who have already endured tough personal situations.
Kelly Zitlow
Certified Mortgage Planning Specialist – Certified Mortgage Instructor
Vice President – Cherry Creek Mortgage
Direct: 480.398.4908 Cell: 602.561.6760
kzitlow@ccmclending.com www.kellyzitlow.com
NMLS # 164330 AZ BK # 0904024
