Buying a house after chapter 13-did not include a house

[ame8199]

So I'll be finished with a chapter 13 bankruptcy in August of this year. Im wanting to buy a small house within the next year or year and half. My Chapter 13 only included credit cards and I paid my car inside the plan. Thats paid off. I do have student loan debt still and probably will the rest of my life.

Im single and live near St. Louis, making bout 40k a year. Im looking for a house around 60-70k.

Right now with 8 months left in my 13, My credit score is mid 600s.

Could I get a home loan? What is a typical interest rate after a Chapter 13 bankruptcy. I won't really have down payment, maybe 3.5%. I think thats the requirement of a FHA loan. Thats my guess is what type I'll be able to get.

Any tips or ideas? Thanks

[Flamingo]

I am assuming your payments will end this August for your Chapter 13. It will take about another 60 to 90 days or so to get your discharge and another several months before your 13 is closed. The best thing for you to do is ask your Chapter 13 attorney for some broker references (really good place to start as your attorney probably works with several). You need to work with a broker who is experienced with folks who have filed BK. Contact the broker and go over this with them. Unfortunately, if you qualify for a mortgage when you apply, it will probably be FHA. You will be considered high risk and will be subject to PMI which will be included in your mortgage payments for the first five years of your mortgage no matter what you put down and no matter what the equity percentage is. This monthly payment can be high and can add a substantial amount to a monthly mortgage payment on top of taxes and insurance.

I good broker can guide you as to all this and to see if you can actually qualify for and afford a mortgage. Best of luck to you...