Many of our clients inquire as to their ability to purchase a home (Real Property) after filing bankruptcy. Below are some of the new Underwriting Guidelines for buying a Real Property. Here is how a bankruptcy or a foreclosure can affect your ability to purchase real estate.
Bankruptcy Info:
1. If a Chapter 13 bk was discharged within the last 24 months; dismissed within the last 48 months; or filed by neither discharged nor dismissed within the last 48 months will receive a "refer with caution/IV recommendation".
(I looked up Refer With Caution/IV: "The loan is ineligible due to the recommendation")
2. Non Chapter 13's filed, discharged, or dismissed will received a "refer with caution/IV recommendation.
Foreclosure Info:
1. Debtors with a foreclosure on their credit report over 5 years old will need to put 10% down and have a minimum credit score of 680 to purchase a principle residence.
2. The purchase of a 2nd or investment property will not be permitted while a foreclosure is on Credit.
3. Cash-out refinances are not permitted while a foreclosure is on your credit.
4. Minimum credit score of 620 to purchase Real Property
All of this information came from www.fanniemae.com. For further information on how Bankruptcy or a Foreclosure would affect you, please call us at 619-233-6300 to set up a free consultation.
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