Hello, I had bankruptcy and recently discharged on December 2008. Right now I don’t have any loans except for 1 credit card that I obtained to rebuild my credit. I’m only using 30% and paying it off every month. My monthly income is $1500 after tax, and I’m able to save $400-500 per month. There are 3 of us considering to buy a home, my mother, fiance’ and I. My mom also have a bad credit but no bankruptcy. My fiance’ has good credit, let say about 650-670 credit score. We are just looking for a small house price ranging from 100K to 150K. Right now we are paying rent for $ 800 per month on time without struggling. My mom started renting the same house 2 years ago and on December 2008, my fiance’ and I move with my mom to help her to pay rent. I just thought that if we can pay $800 per month, why not get a mortgage for $800. Is it possible for us to get a home now or I have to wait a year or more to re-establish my credit? By the way I had my credit card on Febuary ’09 and I have a student loan that will be paid off on April 09. The student loan was on repayment plan since January 09. So I guess that will help to rebuild my credit history from January 2009? Any suggestions will greatly appreciated.

Answer:
With your limited new credit it’s unlikely. Keep your credit straight, get new lines–car, credit cards, and in approximately 2 years you might quality for an FHA loan. I don’t agree with the poster below. I was discharged inJune 2006 and purchased/closed on a new home 8/08. 2 years after—I purchased a car in 2006 –so that I had a couple of years paying for it–and had a variety of credit lines. I did NOT have to put down 20% –3% with FHA. It can be done–just NOT right now and BTW my credit score was in the 660s-680′s NOT 700+ as listed below.