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How long after bankruptcy can I receive a home loan. I am willing to put 50% down does this change anything?

by lyndi._563_154 from Battle Creek, Michigan. Feb 27th 2013 Reply


Thomas Worsfold (TomWorsfold)
#48 ranked lender in Michigan - 7 contributions

Lyndi, it is 2-years from your discharge date. If you have made your 2 year anniversary, I am licensed in Michigan and should be able to help you. If you are not 2 years out, there are some other options that I would be happy to discuss with you. I am a licensed Wisconsin attorney with significant contacts in the Michigan legal community.

Feb 27th 2013
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Charlie Sparks (CharlieSparks)
#9 ranked lender in New Mexico - 397 contributions

If a Chapter 7 bankruptcy, 2 years for FHA with 3.5% or more down; 4 year for conventional with 3% or more down. I don't lend in MI but these are industry standards. More down will lower your payment and, on conventional loans, will reduce or eliminate your mortgage insurance. These minimum down payments are based on credit scores and other factors. Additionally, more down makes you a better overall risk but won't change the waiting periods after discharge. I hope this helps!

Feb 27th 2013
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Jimmy Manuel (jimmymanuel)
#49 ranked lender in Michigan - 2 contributions

Hello Lyndi. I am in East Lansing, MI. I have a program that allows you to be one year out from your bankruptcy and or foreclosure. You can receive 100% financing through our USDA rural development program, of course yoy would have to meet the qualifications of this program. We are the only lender that i know of in this state that is offering the USDA loan for one year out of bankruptcy and/or foreclosure. If you would like an FHA mortgage you have to wait two years from the discharged date of a bankruptcy and three years out from a foreclosure sherriff sale date.

Feb 27th 2013
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Jimmy Manuel (jimmymanuel)
#49 ranked lender in Michigan - 2 contributions

The mortgage bank that I am with can offer 100% financing with one year out of bankruptcy and one year out of a foreclose Sheriff sale date with an USDA rural development loan, most other banks require two years for bankruptcy and three years for foreclosure for an USDA loan. I believe we are the only bank in the state that offers this requirement with USDA, as they have no guideline for seasoning requirements in regards to bankruptcy discharge and foreclose sale dates. You'll find that loans backed by HUD such as an FHA and VA loans, requires you to be out of bankruptcy for two years and foreclose for three years. Conventional loans backed by Fannie Mae and Freddie Mac require 4+ years, depending on if a strategic default for foreclosure took place on a previous Fannie or Freddie backed mortgage, then it would be 8 years. The reason why we offer one year out with our USDA loan is we do not use Ginne Mae or any outside investor to securitize our USDA loan, we do not sell off the mortgage and our bank retains the servicing of these loans. So we use common sense underwriting to help out clients who apply. Best of luck to you and I'm always available for assistance in helping you apply.

Feb 27th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,915 contributions

Your large down payment will not move up the minimum 2-year wait... Sorry

Feb 28th 2013
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Carri Goldring (CarriGoldring)
#38 ranked lender in Michigan - 10 contributions

Two years if you want to do FHA, sounds like you need a portfolio loan and our bank does those with your large down payment.

Feb 28th 2013
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Andrew Alfonso (CashCow)
#45 ranked lender in Florida - 271 contributions

Two years if you want to do FHA, - Down payments that large dont erase the offense and wont influence the lender to say YES - FYI - sorry! Andrew

Feb 28th 2013
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Steven Ceceri (CreativeFinancingOptionsGroup)
#36 ranked lender in Massachusetts - 723 contributions

Hi Lyndi! The BK Guidelines are different for Chapter 7's and Chapter 13's. As noted in this string of replies, the Down Payment doesn't make up for any time requirements. FHA has a standard 2 year waiting period from the discharge date on Chapter 7's unless "extenuating circumstances" can be documented and proven and if that is a possibility, a 12 month waiting period would be the minimum required waiting period. Chapter 13's require a 12 month waiting period from the time the repayment plan began and this situation would need to be evaluated by a Direct Endorsed Underwriter (which we have within our company). For an Automated Approval, a 2 year waiting period would be required. USDA requires a 3 Year Waiting period and their guidelines have been changing recently and will become much more stringent than they once were, so FHA would be the most viable option to explore. I'd be very happy to discuss options offline if you'd like. Feel free to reach out to me directly anytime! Have a great day!

Feb 28th 2013
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Jack Cyrul (Jack Cyrul)
#4 ranked lender in Michigan - 94 contributions

I can get you a new mortgage as soon as 24 months for a free pre-qualification call Jack at 734-395-9027

Feb 28th 2013
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