I have had many questions lately about bankruptcy and what that means for individuals who want to own a home again. Many people who have had a bankruptcy in the past think that they are finished and that they can never buy again, but that is simply not true. When you work with me and my trusted lender, Susan Rose, we take the job of giving you a hand up very seriously. We have helped many people buy their dream home even after bankruptcy and/or a foreclosure.
In this video, I sat down with Susan Rose to discuss options for anyone out there who is thinking about buying a home after a bankruptcy. Susan explains that buying again is still an option if these basic qualifications are met:
Chapter 13 Bankruptcy - Often known as a Wage Earner Bankruptcy. This type of Bankruptcy places the individual on a payment plan to pay back their debt. All one needs to secure a new FHA or VA loan is:
· 12 months satisfactory pay history
· Permission from the trustee
Chapter 7 Bankruptcy Requirements:
· 2 Years from discharge if an FHA loan and no home was lost.
· 3 Years from discharge and deed transfer if an FHA loan and a home was lost.
· 4 Years from discharge if a Conventional loan and no home was lost.
· 7 Years from discharge and deed transfer if a Conventional loan and a home was lost.
While this may sound like a long time to some it is not forever, and the option to buy is still available even with a past bankruptcy and/or foreclosure. All one must do is meet these requirements depending upon the type of bankruptcy and loan type and have a credit score of 620 for FHA and VA loans and a 640-credit score for First Time Home Buyer programs. These credit scores are not hard to obtain and we can help you find out how.
If you have questions about what you can do to get on the path of homeownership, even if you are not quite ready, please feel free to reach out, it is never too soon to start talking about what your options are and what you can do to improve your credit. If you or someone you know is in the market to buy, sell, or invest in real estate, CALL ME, 816-509-7199 I am always here to help you!
**Facts, rates, and figures are current as of 4/2021 and subject to change.**