Hi Jacob: Unfortunately a chapter 7 bk requires at least 2 years from discharge before you can qualify. There are other factors involved besides just the discharge. You also need to re-establish excellent credit after the BK. This means paying higher than normal rates for the newly established credit. Paying them in full each month will help build your credit without the higher fees attached. The co-signer alternative will not work if you need your income to qualify for the loan. If not then the loan could be put in the co-signers name only and you would appear on the deed and mortgage. There are cases where applicants have qualified for an FHA loan after 12 months out of discharge but other compensating factors are necessary. Please e-mail me if you wish to have further details. lharvey@advisorsmortgage.com

Jacob, that is a good question that has came up a lot recently for me. Unfortunately, all banks will use the lowest mid score of the two borrowers as well as the credit profiles for each applicant so you will have to wait the 2 years from the discharge date of your chapter 7 before buying another home. If you were to do a Chapter 13 you could be eligible one year following the discharge. Best of luck with everything. Let me know if I can be of any assistance. Thanks. Brian

Focusing on Jacobs first sentence- I am turning my house over due to chapter 7- means this is a foreclosure and not just a bankruptcy. After the mortgage loan(s) are discharged, the lender will sell the house at a foreclosure action to recoup their losses. If we stick to FHA guidelines as the previous answers have, than the minimum amount of time to wait before qualifying for another mortgage loan is 3 years. An exception may be granted to the 3 year period if the foreclosure was the result of documented extenuating circumstances such as a serious illness or death of a wage earner. You can e-mail me at krusten@quoinbank.com for more info.