Mortgage Question

[copper2]

Hi all, long time no talk. I'm working all the time nowadays, Miss you all!!! I just bought a new car (used, lots of miles, 21%) and am now one year post-BK. My credit score on the car paperwork was 668. I am thinking about mortgages again, but am in no real hurry. My last attempt was a median score of 590 and only 3 months out. I couldn't buy enough house to remain in the area I live in. My question: Is the interest rate based solely on the FICO? Will it just get better the more I wait? I live in a very over-valued real estate market and foreclosures are up 72% already this quarter. I feel funny looking at foreclosure properties because I'VE JUST BEEN BANKRUPT. It's such a horrible place to walk through. On the other hand, maybe I could help someone avoid the same thing. Any thoughts?

[FilingOnMyOwn]

Argh, you're paying 21% on your new car? Did you not already learn what not to do from bk....? Anyways, if you apply for a home loan it will mostly be based on your fico score. If you do an FHA or government loan if you qualify, it would give you an interest rate close to average regardless of your score. But its not something you can count on. I would work on building your credit score, save some money if you can, and wait until next summer when housing prices should bottom for the short term in my opinion. And if you could buy a foreclosed house for cheap, why not? Not much different than just buying back the one they would have or did take from you, in your own bk.

[MTG_BANKER_OH]

Hi all, long time no talk. I'm working all the time nowadays, Miss you all!!! I just bought a new car (used, lots of miles, 21%) and am now one year post-BK. My credit score on the car paperwork was 668. I am thinking about mortgages again, but am in no real hurry. My last attempt was a median score of 590 and only 3 months out. I couldn't buy enough house to remain in the area I live in. My question: Is the interest rate based solely on the FICO? Will it just get better the more I wait? I live in a very over-valued real estate market and foreclosures are up 72% already this quarter. I feel funny looking at foreclosure properties because I'VE JUST BEEN BANKRUPT. It's such a horrible place to walk through. On the other hand, maybe I could help someone avoid the same thing. Any thoughts?

When you are getting a loan post BK your score determines your rate and loan options, The higher your score the better your rates and options. Your options get much better once you are 2 years out when you can get into a FHA loan or some other conforming loan, but some of those programs have home pricing limits which can limit your possibilities depending on where you live. With a 668 score you should be able to get some fair rates with wherey ou currently sit though but the options wil get better 2 years out.