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Obtaining A Mortgage after Chapter 7

I am turning my house over due to chapter 7. I know that depending on credit scores I am not eligible another home loan for two years. Can I get a new mortgage if I have a co-signer with really good credit as soon as my chapter 7 is discharged? by jacobjohnson from San Diego, California. Apr 13th 2010 Reply

Leo Harvey (LHARVEY)
#7 ranked lender in Pennsylvania - 140 contributions

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.

Apr 15th 2010
Brian Esquivel (currentazmortgagerates)
#24 ranked lender in Arizona - 66 contributions

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

Apr 13th 2010
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