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Qualifying for a mortgage after Chapter 13 Discharge

I am due to be discharged from my chapter 13 bankruptcy in less than 6 weeks. I would like to sell my current home (that was included in the chapter 13) and buy a new home. I will have about $20K profit to put into new home and my husband is a Veteran. He was not in the Chapter 13, but he needs my income to qualify for the house price we are interested in $250K to $300K. Will I be able to sign on a mortgage loan? My income has greatly increased since filing for the chapter 13, filed due to change in income (decrease), medical bills and ex husband not paying child support. Several Loan Originators that I talked to said I would have to wait 2 years? by Dawnru_926_743 from Brandon, Mississippi. Oct 19th 2012 Reply


William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions

If you were to apply while you are still in BK and before it was discharged, you would need permission from the trustee, but you could have applied then.. However after your out of BK, you would have to wait 2 years. While in BK, it's unlikely the trustee would have approved you for more expensive home... with VA however, they only require 1 year out of BK to qualify, but you need to find a lender who does not have their own guidelines which extend that waiting period... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Oct 19th 2012
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

2 year minimum unless you use private money!

Oct 19th 2012
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Joel Lobb (kentuckyloan)
#3 ranked lender in Kentucky - 192 contributions

2 years with a good reestablish credit history. Get a secured card asap and start paying on it.

Oct 20th 2012
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Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,256 contributions

yes,, you will have to wait for the 3 yrs for fha, and 5 to 7 for a conventional.. you will have to use your husband ;s income to qualify, and get a house that you can afford with his income... i specialize in VA LOANS ... a VA LOAN is 100% no mortgage insurance ,and they are flexible on the debt to income ratios... please email me at yourloanpartnerforlife@live.com linda

Oct 19th 2012
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DOUG CAPPS (DOUG CAPPS)
#1 ranked lender in Mississippi - 208 contributions

You may be able to qualify, but your mortgage options will be limited due to the BK. With a FHA loan, you can actually get mortgage financing "while you are in Chapter 13 bankrupcty" and "one day" after the discharge of a Chapter 13. Of course, specific qualifying guidelines will apply - - AND - - I have closed loans like this. Give me a call or email on Monday and lets talk about it a bit more.

Oct 19th 2012
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Steven Karp (stevek81)
#9 ranked lender in Rhode Island - 151 contributions

Sorry , you would have to wait 2 years out of bankruptcy with a re-establishment of credit in order to qualify, that would be for an fha loan, for VA, good luck finding a lender who will do it for less than 2 years too....if the bankruptcy, by any chance was medically related, ie: cancer, long term illness, etc.....possible exception to the rule...but wait 2 years you must ....

Oct 19th 2012
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