Chpt 7 discharge then new home purchase?

[Blue_Ray]

[BKTango]

You can go to the mortgage after bankruptcy section here and read up a little for some information, but I don't think a lender will touch you until you are at least a year or two out of bankruptcy. That's been the normal time period anyway.

[Minnymouth]

You can purchase a home within a year after your case is closed but it will be at a high-risk interest rate because of the bankruptcy.

Most lenders prefer you be out of bankruptcy 2 years with a "good credit rating" since you filed. On time payments, etc.....

The longer you are out of bankruptcy the better the interest rate you will receive.

Also the downpayment will make a difference in your interest rate also......

Minny

[Blue_Ray]

Thanks. I was looking @ BK after chpt7. I own a home now, but I think I can tolerate it for 24 months afterwards. Then after that I do plan to do the 20% down after the 24months from the BK.

thanks

[freshstart06]

I am a Mortgage broker (not working now due to injury) you can purchase a home 1 and YES 1 day after discharge if your scores are right. There are lenders that even do credit check but the interest are high ie 9.75%-11.5% that program will only be a one to two year arm so you will have to get your stuff together fast for the no credit check loans. I honestly did a loan for a lady last year, she had a discharge BK and foreclosure less then 8 months but had a 602 mid score... guess what... she got 100% financing interest rate was high but she got her home loan.

Anything is possible

[lrprn]

Anything is possible

It's more accurate now to say anything USED to possible, FS.

As the bottom fell out of the subprime lender market over the last year, an active and very knowledgeable mortgage broker who posts in the Mortgage After BK area MTG_BROKER_OH (aka Nick Kusan) has stated several times to inquiring members that NO ONE is giving 0% down loans any more.

One of the worst things any of us can do after declaring bankruptcy is jump right back on the debt merry-go-round just because we emotionally want to have a house again no matter what the cost. By waiting two years as Nick recommends and saving up 20% down, you will own your new house - your house won't own you. That's a solid long-term goal that keeps us out of future financial trouble. Loaning to the maximum of what we can afford is what put many of us here. Hopefully we've all learned enough the hard way to never make that mistake again.

[freshstart06]

I am not working, but I only became inactive a few months back. I know you can still get a mortgage 1 day out of BK. I am talking about this year. I am good at what I do and I know what all the subprimes that are still available can do. yes, there is still 0% down, If you need proof I will gladly fax you over documents. When I was working all I did was subprime and investments.

However, I would not suggest going right into a mortgage right now, not only because of the BK but the market is very bad now, One of the main reasons why people are filing BK is because they are backwards in their mortgage. Some had adjustable rates and when time came to refinance out of the adjustable they did not have enough equity. Some did not even realize they had prepay either.