I have been trying to get approved for a home laon for 7 months now and it seems everytime I get close, there are new quailifications I don't meet.

Here is our situation:
husband and I have scores over 620
me discharged chpt 13 in 01/09
husband discharged chpt 7 in 11/07
husband had a home foreclosure in last 3 years (part of BK)
we were originally told we could get a rural development loan 100% financing but now are being told we don't qualify because of the BKs, I'm not sure why this wasn't looked at 7 months ago as it was completely disclosed at that time

Anyone know of ANY type of home loan available to people in our situation?

Hi Annie,
I would guess that even if you do qualify under the standard guide lines for a loan program (USDA does not have a specific time frame for the discharge of BK), the lender still considers you too high of a risk.

You have 3 major adverse credit actions in the last 21 months so most lenders are going to be a little apprehensive about approving you.

I just had someone with the same situation come to me and there was a lender who did not impose a restriction on how long you had to wait after your Bankruptcy or Foreclosure.

They had a home picked out and they bank was rejecting their offers. Then the lender changed their requirement from 1 day out to 18 months.

The borrower was then forced to wait. Wouldn't you know the original house is now listed for less than the amount they offered! If they only would have accepted the offer we could have closed it.

Long story short no I have not come accross anyone else for these folks. USDA does not have a requirement but the lenders who fund the loans and the investors who purchase them do.

In 2005 I inquired about getting a USDA loan. The rep told me three years had to pass after BK to qualify.

Lender overlay Jim. On a 620 score USDA does not care if you are 1 day out of foreclosure or bankruptcy. However, the lenders won't buy it or service it. They want 24 months on a bk and 3 years on a foreclosure typically.

I had a buyer-couple about a year ago who were 2 years out on a Deed in Lieu on a secondary residence (condo). Despite the efforts of a local mortgage broker attempting to find them a loan, in the end it was a no go. We were told at the time lenders required 3 years. Afterwards we were told that the lending guidelines would be made even more restrictive, and that it would be 4 years after a DIL.