Does anybody has tips for first time home buyer who has filed bankruptcy?

Question

I am in the market for a new home and earn 30k a year i live in the state of illinois.

Answer 1

try fha housing consultants. They work with first time buyers with little or no credit.

Answer 2

All is not HOPELESS - ok - take a deep breath. If your credit score is 500 or higher, anything is workable, with a seller second - etc the higher the credit score the better. Lenders look at the middle score...of the 3 scores.

You can get financing 1 day out of a BK. The ltv you need - depends on your middle credit score. - if you have a 580 + you will get 100 percent financing - and the rate will be roughly in the high 8's. That would be an adjustable, but fixed for 2-3 years, than you could refinance and get a better rate, but you would have your home. There are alot of factors to consider - job time, income, etc. But it is workable.

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??

As I mentioned try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out.


Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information.

Answer 3

It will depend on how long ago you filed for bankruptcy and what you have done with your credit since. If you cleared your record then fell back into a bad pattern you will have a hard time, or at least a high interest rate. I normally refer someone to a mortgage broker or someone like HOME123. They specialize in helping people with lower credit scores. If they cant do it, they will tell you what you need to do to get a mortgage. Also, if you live in Illinois, that is where i live. There are always people willing to sell homes contract for deed. You might want to see if there are any available in your area.

Answer 4

This is rough, my husband and I have recently been though this same situation. We filed because of medical bills about 10 months ago. Now we want to get a house. We weren't having any luck with bank so we heard of this man who does personal mortgages. No, we don't get credit at our bank, but we figured if we stick with this man for a year or 2 then we could refinance with a bank to get a better interest rate and credit for paying on our house. I don't think there is any easy way for you....good luck!

Answer 5

There are programs out there for people One Day out of bankruptcy. It may be a bit difficult if you do not have a down payment or other funds for closing costs, etc; but not impossible.

You need to talk with a competent mortgage planner to analyze your situation, needs, and goals in order to find the best program, rates, and terms possible for your situation, and build a plan to reach those goals.

Answer 6

Is your bankruptcy filed or discharged? If it is just filed noone will lend money, however if it is discharged then there are many lenders with programs that will do one day out of bk lending. If indeed it has been indeed discharged and you haven't reestablished yourself email me and I'll give you a few ideas on how to get there in 30-60 days. [e-mail].

Answer 7

For economic and credit difficulty i replaced into search for for recommendations at this web site: credit-recommendations.data- RE Self filing financial disaster or employ an lawyer?? extremely wanna record myself it would shop about $six hundred, already went through the debt counseling and they suggested i replaced right into a lost reason to pay it back as a results of being a unmarried mom with 3 little ones. so of direction if i cant have adequate money my expenditures i cant have adequate money to employ an lawyer in time to shop myself from extra garnishments. yet is filing it myself a good element?? most of the debt is from my divorce and because we didnt record even as we replaced into married they are going to fall back on him and in no way with the help of decision. yet per chance they can get their money from him because he does make over two times what I do. I hate to pin it on him yet i opt to cleanup my act and look ahead for the sake of my little ones...anybody with a guiding concept please. opt to record Tues!!!!

Answer 8

I would call a bankruptcy lawyer - you get a free consultation...they can tell you when and how to do it. Good Luck!

Answer 9

good luck
you will pay higher interest rates because of the bankruptcy

Answer 10

I would have to say you shouldn't file bankruptcy.
If you haven't already.