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Buying a house after Bankruptcy

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  • msouth01
    replied
    There is life after bankruptcy. I'm a mortgage broker that have approved loans for people one day out of bankruptcy with 100% financing depending on credit score. I currently am licensed in Iowa and if anyone is interested in seeing what they qualify for or how to clean up their credit after bankruptcy call me today at 515-276-7878 and ask for Michelle at Advanced Home Lending

    Leave a comment:


  • sobroke
    replied
    WOW. Thanks StaciMM! That is a great website!

    Leave a comment:


  • StaciMM
    replied
    You can try here:



    I found their website as they're known as being BK friendly. The link allows you to put in #'s (without anything that will run your credit) and get ideas on what programs they offer, including rates & payments. Your rate will depend, based on state and LTV%, as well as doc type.


    Originally posted by sobroke
    Lets say hypothetically you want to buy a house 1 day after discharge. Your scores are above 580. What would a typical interest rate be if the market was at 6% for 30yr fxd? Just curious. Also would the amount of the loan be effected by the bankruptcy? Any experts out there? Thanks a million!

    Leave a comment:


  • sobroke
    replied
    Lets say hypothetically you want to buy a house 1 day after discharge. Your scores are above 580. What would a typical interest rate be if the market was at 6% for 30yr fxd? Just curious. Also would the amount of the loan be effected by the bankruptcy? Any experts out there? Thanks a million!

    Leave a comment:


  • Genenco
    replied
    Originally posted by Tberry
    Hi! I have not posted anything for a while, but I would like to reply to this qusetion of buying a home out of BK. My husband and I were discharged in March of 05, and we are closing on our first home Dec. 20th. It can be done. Lazar is right, you need to check your credit reports and scores to make sure they are correct with no errors. We had four or five that caused our scores to be very low, but once they were fixed, our scores went up significantly. we are now at a 711
    It's Slurpee Time! (I couldn't resist, I worked at 7-11)

    Leave a comment:


  • StaciMM
    replied
    Congrats, and thanks for the positive post! We'll be in the buying a home after BK boat, sometime between August '06 and May '07.

    Originally posted by Tberry
    Hi! I have not posted anything for a while, but I would like to reply to this qusetion of buying a home out of BK. My husband and I were discharged in March of 05, and we are closing on our first home Dec. 20th. It can be done. Lazar is right, you need to check your credit reports and scores to make sure they are correct with no errors. We had four or five that caused our scores to be very low, but once they were fixed, our scores went up significantly. we are now at a 711. Be patient. I don't know if I can say this on this board, I don't want to recommend any businesses, but Dominion homes has a great program for people out of BK. We got a great rate, 6.25%, and no closing costs. You might want to look and see if they build homes in your area! Good Luck!!!

    Leave a comment:


  • StaciMM
    replied
    I see your logic-a recent BK'er has no way 'out' for 8 years. BUT, if I were a creditor, I think I would be a little shy also. It is taking a risk to grant credit to a new BK'er because there is nothing to distinguish the guy who makes great choices but had bad things happen to him from the guy who ran up every credit card he had, and hasn't gotten his spending under control yet.

    Originally posted by tinroofrusted

    What I don't understand is the unwillingness from most to allow for a second chance. It's not like we can file again for SIX years. That means, in my books, that we would be less of a risk than, say, someone who hasn't filed and is up to their a$$ and elbows with credit cards and debt......

    Leave a comment:


  • Tberry
    replied
    house after bk

    Hi! I have not posted anything for a while, but I would like to reply to this qusetion of buying a home out of BK. My husband and I were discharged in March of 05, and we are closing on our first home Dec. 20th. It can be done. Lazar is right, you need to check your credit reports and scores to make sure they are correct with no errors. We had four or five that caused our scores to be very low, but once they were fixed, our scores went up significantly. we are now at a 711. Be patient. I don't know if I can say this on this board, I don't want to recommend any businesses, but Dominion homes has a great program for people out of BK. We got a great rate, 6.25%, and no closing costs. You might want to look and see if they build homes in your area! Good Luck!!!

    Leave a comment:


  • sobroke
    replied
    Sorry to return to this subject, but I was hoping to build a modular home next summer. I was told that modular homes are considered stick built. Do banks really not classify them as stick built? I was told the difference between a modular and manufactured home is modular is stick built and manufactured has a steel frame. The difference between the two is about $14K. Please don't debate about this, but maybe someone can shoot me a PM? Thanks.

    Leave a comment:


  • tinroofrusted
    replied
    Originally posted by Genenco
    See, this is what bugs me. I mean that now with the new laws, like the old ones. In reality, you'd be considered "Gold" as you couldn't do a BK for a long time now.

    However, I can also see that any lender who isin't careful, would end up being burnt like a chicken in a overloaded broiler......


    True, but the whole idea of bankruptcy is a fresh start.
    Too many creditors forget this, and in fact, I think that if we were to look more deeply into rejection reasons, we might even find that stating that a turndown due to bankruptcy is illegal. (Don't hold me to this, because I am only starting to research it.)

    What I don't understand is the unwillingness from most to allow for a second chance. It's not like we can file again for SIX years. That means, in my books, that we would be less of a risk than, say, someone who hasn't filed and is up to their a$$ and elbows with credit cards and debt......

    Leave a comment:


  • Genenco
    replied
    Originally posted by MTG_BANKER_OH
    To obatin conventional financing you need 4 years out of a BK but to obatin an FHA loan you only need 2 years out. FHA has the same rates as conventional rates ans only requires a 3% down payment, which can be gifted from the seller to obtain zero down loan. FHA is your best option for a good rate 2 years out of a BK. The most important thing is that you reestablish credit as soon as possible after the BK, and make sure all of your accounts in the BK are reporting correctly after the BK. The easiest thing is to get a $300 credit card and use it every few months and pay it off. If you are looking to buy a home right out of Bk or refinance your home after BK it can be done. You only need a 580 to get a 100% purchase loan one day out of discharge.

    See, this is what bugs me. I mean that now with the new laws, like the old ones. In reality, you'd be considered "Gold" as you couldn't do a BK for a long time now.

    However, I can also see that any lender who isin't careful, would end up being burnt like a chicken in a overloaded broiler......

    Leave a comment:


  • MTG_BANKER_OH
    replied
    Originally posted by Genenco
    (Note, this is NOT legal advice, but advice from a lawyer I know)

    Most mortgage companies tell us that after 2 years, bankruptcy doesn't hurt your chances of buying a home, so long as you are otherwise qualified.

    To obatin conventional financing you need 4 years out of a BK but to obatin an FHA loan you only need 2 years out. FHA has the same rates as conventional rates ans only requires a 3% down payment, which can be gifted from the seller to obtain zero down loan. FHA is your best option for a good rate 2 years out of a BK. The most important thing is that you reestablish credit as soon as possible after the BK, and make sure all of your accounts in the BK are reporting correctly after the BK. The easiest thing is to get a $300 credit card and use it every few months and pay it off. If you are looking to buy a home right out of Bk or refinance your home after BK it can be done. You only need a 580 to get a 100% purchase loan one day out of discharge.

    Leave a comment:


  • Genenco
    replied
    Originally posted by Sara
    Our Ch. 7 was cleared in Nov. 2003. We are currently saving for a down payment for a home. We have read that we will need 20% down and that our ch. 7 will have to be cleared for 2 years. Is this true? We currently have not opened any credit cards, and our cars are paid for. We are making monthly payments on our student loans.
    What steps do we need to do to ensure that we can get approved for a house loan?

    (Note, this is NOT legal advice, but advice from a lawyer I know)

    Most mortgage companies tell us that after 2 years, bankruptcy doesn't hurt your chances of buying a home, so long as you are otherwise qualified.

    Leave a comment:


  • tinroofrusted
    replied
    Originally posted by StaciMM
    It is a given that different brokers work with different lenders, and what one may not do-it is possible that someone else does. THE END.

    Can we move back to topics that are more constructive? Such as, what are the requirements for someone to be approved for a mortgage after BK? (Specifics, please.) Give examples, like for XYZ lender, you'd need a score of such-and-such, and so many open TL's, and so much $$ in liquid funds.

    Some questions I have-and I'd love to see the experts debate these-when is it appropriate to do stated or no doc, and what does this accomplish? I've seen the terms, and know what they mean roughly, but why would you go this route?

    Good idea.

    Ideally, the best time for someone to purchase a home would be at least two years post bk with rebuilt credit history, and proof of rent payments for at least 12 months. For credit scores, our only requirement is that it be above 500. I also would suggest a substantial down payment. Not only is it good to have equity in your new home, but it's also a good idea because lenders are going to want to see that you can pay for a home as well. The down payment helps. Time on the job is the second most important thing. Make sure to have a good and positive employment history!

    Stated or not.... that's a toughy. I try to stay away from these as much as possible!! We do work on them however. It just depends on what the circumstances are to be honest with you!

    Leave a comment:


  • StaciMM
    replied
    It is a given that different brokers work with different lenders, and what one may not do-it is possible that someone else does. THE END.

    Can we move back to topics that are more constructive? Such as, what are the requirements for someone to be approved for a mortgage after BK? (Specifics, please.) Give examples, like for XYZ lender, you'd need a score of such-and-such, and so many open TL's, and so much $$ in liquid funds.

    Some questions I have-and I'd love to see the experts debate these-when is it appropriate to do stated or no doc, and what does this accomplish? I've seen the terms, and know what they mean roughly, but why would you go this route?

    Leave a comment:

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