better rates after 2 years post bk??

[angelaohio]

hi!!

i have heard from a few sources that you experience better rates (mortgages, cars, etc) with a decent credit score 2 years post discharge.

is this the case or is it just a bunch of crap?

i don't want to look forward to something a year from now and then be disapointed...

i have busted my butt to get my scores up, i hope its not a wasted effort.

any input or experiences?

[HHM]

It is definitely true for mortgages...you could have a 680 score, but if you're less than two years out from your discharge, you will still be considered a sub-prime borrower (on a side note, it is doubtful anyone could maintain a 680 score with a recent BK, but you get the idea).

So yes, being more than two years from your discharge will help you get better rates on a mortgage.

[MTG_BANKER_OH]

It is definitely true for mortgages...you could have a 680 score, but if you're less than two years out from your discharge, you will still be considered a sub-prime borrower (on a side note, it is doubtful anyone could maintain a 680 score with a recent BK, but you get the idea).

So yes, being more than two years from your discharge will help you get better rates on a mortgage.

Yep 2 years is usually the magic number for mortgage loans, it does not open all programs but it does open enough were you can get a good deal.

[DisneyGirl]

We're 2 1/2 years post BK and have found it to be true.

[angelaohio]

glad to hear that. at least i have something to look forward to in a few months!!

i'm supposed to close monday on my first house with 100% financing and an 11% interest rate. so a refi in a few months would be worth the closing costs.

thanks for the advice!