does anyone still do subprime loans?

[persephone]

We were looking to get a mortgage for 65,000 and have been calling around everywhere to no avail. We have a 20% downpayment and our scores are around 620. Discharge was earlier this month. We have already paid but open accounts that remained through bankruptcy. Is it way too early?


ETA: We are not looking for a subrime only. We just figured thats what would be available to us currently.

[epiphany]

We were looking to get a mortgage for 65,000 and have been calling around everywhere to no avail. We have a 20% downpayment and our scores are around 620. Discharge was earlier this month. We have already paid but open accounts that remained through bankruptcy. Is it way too early?

Okay, I am no expert on home loans but why would you want a subprime? Isn't that the type that's gotten middle America into the whole foreclosure mess? I personally know people affected by this, but don't know the gory financial details, other than their payments skyrocketed to what they can't afford.

ep

[persephone]

Okay, I am no expert on home loans but why would you want a subprime? Isn't that the type that's gotten middle America into the whole foreclosure mess? I personally know people affected by this, but don't know the gory financial details, other than their payments skyrocketed to what they can't afford.

ep

Its not that we WANT one. We just figured that the subprime would be the only ones allowed for us so soon out of bankruptcy. We prefer a regular loan. We would accept a subprime until we can refinance into a regular one.

[bkdone]

We were looking to get a mortgage for 65,000 and have been calling around everywhere to no avail. We have a 20% downpayment and our scores are around 620. Discharge was earlier this month. We have already paid but open accounts that remained through bankruptcy. Is it way too early?

Mortgage companies are turning you down for a good reason... Right now...you are an awful credit risk (according to the lending industry and every news headline) and they cant afford to take the risk. Any mortgage that they might offer you would be at such crappy terms that you probably wouldnt want it anyway.

I have been hanging around this forum for a couple of years now. I'd say yes, its definitely too early to ask for a mortgage. My advice would be to wait awhile and maybe in 1 year, consult with a mortgage broker. They can shop your mortgage application around and give you all the options you might have. Patience and time are the best healers for BK. If you can wait, I'd say do so. But, you have to do what's best for you... Good luck and please keep us posted.

[persephone]

Mortgage companies are turning you down for a good reason... Right now...you are an awful credit risk (according to the lending industry and every news headline) and they cant afford to take the risk. Any mortgage that they might offer you would be at such crappy terms that you probably wouldnt want it anyway.

I have been hanging around this forum for a couple of years now. I'd say yes, its definitely too early to ask for a mortgage. My advice would be to wait awhile and maybe in 1 year, consult with a mortgage broker. They can shop your mortgage application around and give you all the options you might have. Patience and time are the best healers for BK. If you can wait, I'd say do so. But, you have to do what's best for you... Good luck and please keep us posted.

Thank you for the advice. I appreciate it.

[bkdone]

Thank you for the advice. I appreciate it.

The nice thing about a mortgage broker is that you fill out one application and they only pull your credit one time. If you go from company to company, you have several hard pulls and no open mortgage to show for it...in the end, doing more damage to your scrore. With the broker, they can go from company to company with the same file. I used a broker both times I've bought a house or refinanced, and it was much easier.

Just my 'additional' 2 cents. You'll do what's best for you!

[epiphany]

Sorry, didn't mean to sound abrupt. Subprime is such a nasty word here in Southern California.

It's just that from what I understand, unless things seriously turn around for you fast, you won't be able to get out from a subprime because when you do want to refinance there will be no equity in your house for you to do so.

I could be wrong....just what I hear.

However, we here in So Cal would kill for a 65,000 mortgage. Sigh...

ep

[CindyLou]

wait until 1 yr has passed then you can get into an FHA....especially with your 20% down they will be willing to waive the 2 year rule.

[Elf]

The trick is to find a mortgage person who likes you, believes in you, and is willing to hang with you until they find a loan for you.

There are always possibilities. I found a loan before I got my CH13 discharge, but only because I found the person willing to make it happen for me. It was subprime, and I did a re-fi a year later.

But it happened. Luck and tenacity: you need both, but it can happen if you have them. Go for it.

Elf

[jal1129]

I have'nt heard of anyone who is still doing mortgages with less than one year from discharge (from a ch 7), unless you can qualify for a low income or rural loan. But having a 20% downpayment would disqualify you from both of those, as part of the requirements are that you cannot afford/don't have the money for 20% down.

[persephone]

I have'nt heard of anyone who is still doing mortgages with less than one year from discharge (from a ch 7), unless you can qualify for a low income or rural loan. But having a 20% downpayment would disqualify you from both of those, as part of the requirements are that you cannot afford/don't have the money for 20% down.

Thank you so much for the info!