Ready to move on, but...

[jwsmartin]

We filed for ch7 in March and we were discharged this month. My question is when can/should we look into buying a new home?

Here are some details...

My job transfered me and when we moved we could not afford our mortgage and new rent payment. We tried to sell but could not, so we included the home in the ch7.

We were very lucky to be able to rent a new home, but I just hate pumping money into a rental. I have heard two years before we can even get approved, but I have also heard of people getting approved right after bk, but with a very high interest rate. In my mind, this would be better than wasting money in a rental. Am I correct?

Here is a breakdown of our salary, rent, etc. Any advise would be greatly appreciated. Thanks!

Total Household Monthly Gross - $8500
Current Rent Payment - $1450
Current Car Payment - $660

No other debt or payments. All bills associated with bk were due to medical expenses (premature birth of twins) and relocation of job. I mention this because I think I should include a letter about it when we apply for a mortgage.

[keepmine]

Why do you consider rent a waste?
The alternative will be a subprime mortgage with high interest rates and fees. Plus, the real estate market may not be done dropping. Don't take a bad deal when in a couple of years, you'll qualify for a mortgage with normal rates {FHA}. As time goes by, you'll qualify for more conventional products.

[jwsmartin]

Thanks for the advice. Is there an exact time frame, or does it depend on banks? Our current rental will probably have the option to buy after this lease is up in December. If we don't, they will probably sell and we will be unsure how long we will be able to stay. I have the feeling that we will need to move sometime next summer at the latest.

I guess none of that really matters, I am just curious of the time frame. Thanks!

[Help!]

Why do you consider rent a waste?
The alternative will be a subprime mortgage with high interest rates and fees. Plus, the real estate market may not be done dropping. Don't take a bad deal when in a couple of years, you'll qualify for a mortgage with normal rates {FHA}. As time goes by, you'll qualify for more conventional products.

I completely agree with this. Have you considered renting for a while and building a big fat savings account in case life takes another unpredictable, expensive turn?

[BKParalegal]

First off, there aren't any subprime loans anymore, that is long gone. You typically can get a conventional loan 1 year after filing with a FICO of 640 or more. You can get an FHA loan 2 years after filing with a FICO score of 560 or so.

Good Luck