Re: SFH financing after chapter 7

Are there still any lenders that would work with someone after chapter 7? I’m currently looking at some of the SFH in Goodwill, AZ since we’re thinking of moving there. But some say we won’t qualify due to Chapter 7 last year. We filed for Chapter 7 due to business reasons but we’re capable of paying our personal debts. I noticed that most of the houses that we like are within the 100k-175k range. Any ideas on this one?

You will most likely need another year (maybe 2) of BK seasoning before looking at FHA financing. Meanwhile, you can look at owner finance options to at least build some equity during that time frame.

After a chapter 7 bankruptcy a person may buy a single family home with full documentation, tax returns and proof of employment after 2 years.

There has been some discussion because of the current mortgage meltdown to extend this to a 3 year period, but I believe nothing has been done at this point to change the 2 year provision.

Make sure your other credit is paid as agreed and you will be fine 2 years after your day of discharge.

If it has not been 2 years take a look at getting a lease option or a contract for deed or a sub2 deal. This will give you ability to refinance after time.

Thanks! I really appreciate your responses.

You will have to find a seller willing to hold the paper for a while, most people (at least the ones I deal with) want to sell their paper asap. With a BK thats going to make it harder for you. Perhaps you should also be open to a L/O with at least a 3yr term.