Question about new credit

[mike9302]

After filing for bankruptcy I am waiting for my 341 hearing. But after the discharge has anyone tried or have gotten credit from one of the companies out there you filed bankruptcy on?

The reason I asked this is I was online just browsing home loans and noticed Bank of America has a great program for buying homes but Bank of America is someone I have two accounts with.

Also wanted to ask what experiences have you guys had with getting a mortgage after bankruptcy before 2 years from discharge? If I could I probably would go with a mortgage even with a higher rate simply because it is still cheaper than rent and I could refinance after a couple of years or start out with an intrest only loan to keep the payments a little lower. I expect to be discharged around the end of November. I bring home about 28000 a year and my wife has great credit and works part time bringing home about 12000 a year. Where I live I can get a decent 3 bedroom home for around 75,000 or 80,000 and that is what I am looking at.

[Cali]

I doubt any major company you BKed would give you credit right now and some will blacklist you forever.

[BassBoy]

I agree with Cali. Lenders you BK'd on could blacklist for many years, even long after your BK is off of your credit report.

With respect to getting a home loan, it is possible. You mention the higher rate, so you understand that, but I recall someone on this forum (some time ago) getting a home loan shortly after discharge and I think the rate was over 10%. Not to mention, with many lenders tightening up their lending guidelines, it's not as easy to obtain a home loan, like is was earlier this decade.

[keepmine]

Don't take a bad deal upfront with the "hope" that you can refi into something better later on. Wait, rent for awhile and build up some cash, work on your credit and let the bk age. A few years down the road, you should qualify for conforming loans at conventional rates.

[Flamingo]

Do a search on here as to your topic. You will find a TON of information. But you need to realize that with a BK on your record (will be on your credit reports for 10 years from the date of its filing) that many creditors as soon as they see that BK on your record will not give you credit no matter what your score may be several years after filing. Some are BK friendly (Orchard Bank, Washington Mutual). Then there are the creditors that will have all sorts of high interest rates and fees due to your BK/bad credit. If you included banks (i.e., Chase, Citibank) in your filing or any department stores or other credit cards associated with those banks in any way, you can 100% be certain if you apply to them for a mortgage or credit, you will be denied.

The only thing that is your friend after discharge is time. If you work hard to keep all your payments on time and never be late with anything, including the phone or electric payments, in the long-run it will pay off. The worst thing you can do is right out of discharge apply for credit, get denied and try several times elsewhere and run up a bunch of hard inquiries on your report - they stay on there for two years. Not a good thing.

Best of luck to you.

[justplaintired]

Actually jumping into a house right of BK probably isn't an option. I have seen many post saying once out of BK 2-3 yrs you can get financing threw a FHA loan. So you're best bet is to keep renting until you have let some time build after your BK. Also from what I have read using a cc wisely can help get your credit score back up. Seems like cleaning up your credit report after your closed is the first step. And like Flamingo said, don't get too many hits on your credit report, that's not good.