2006-09-27 03:21:31 · 8 answers · asked by osunumberonefan 5 in Business & Finance ➔ Renting & Real Estate
Adam my parents hust got done filing in like october last yr and we cant completley buy a house till January..but it does differ in each state...Missouri its awhile Ohio i have no clue on...sorry i couldnt help out much
2006-09-27 14:23:31 · answer #1 · answered by Anonymous · 0⤊ 1⤋
My husband and I were discharged July 2004 and purchased our house December 2005. Give your credit time to recover. If you don't you could have a tremoundous interest rate. Be honest about filing and why you had to when you go to get a loan. Being upfront helps. Don't use a fly by the night mortgage company when you do get ready. Use a bank or a credit union. They have the best rates. We went through a credit union and got a 7.15% interest rate. Which is only .15% higher than what we payed on our first house. Good Luck to you. You can repair your credit, just be patient and make all payments ahead of time if possible, just don't make them late!
2006-09-27 10:25:33 · answer #2 · answered by GreeneyedCowgirl 5 · 1⤊ 0⤋
The most competetive interest rates are offered by the largest mortgage securitizers, FNMA (Fannie Mae) and FHLMC (Freddie Mac). Their loan guidelines specify that a bankruptcy must have been discharged for a minimum of 4 years to qualify for their financing. FHA guidelines specify that a bankruptcy must have been discharged for a minimum of 24 months.
There are investors who will permit financing at lesser terms of discharge but you will pay a higher interest rate due to the lender's perception of risk.
Be careful, there are unethical loan officers out there who prey on people in your circumstances. Do your homework, choose your loan officer very carefully, get everything in writing, do not sign final papers if they do not coincide with what you were promised. You are less likely to be taken advantage of by a mortgage banker or a credit union due to their federally regulated status, and I say this having 20 years experience as a mortgage lender both with mortgage banks and mortgage brokerages.
In your particular circumstances it may make sense to accept a loan with a short term pre-payment penalty to lower the rate since you will not qualify for a refinance at the most competetive rate for a minimum of 2 years anyway. Once the pre-payment penalty has expired you may refinance to the best rate available.
I'd be happy to help you explore your options at no cost and with no commitment. My email is Nlabonte@firsthorizon.com.
2006-09-27 10:43:34 · answer #3 · answered by mazziatplay 5 · 0⤊ 1⤋
Once the bk is completed, there is no requirement for waiting. The problem is obtaining a mortgage. Go to a mortgage broker, explain your credit issues, and ask if he can obtain a mortgage for you. You will pay a higher rate if you get one. The amount of money you are putting down will affect the decision as well.
2006-09-27 10:25:19 · answer #4 · answered by Anonymous · 0⤊ 0⤋
As soon as the ink is dry on the paperwork you will get pre-approved offers for mortgages, vehicles, and credit cards.
If you want a halfway decent rate you will most likely need to spend 1-2 years reestablishing credit.
2006-09-27 10:32:22 · answer #5 · answered by Jim R 5 · 0⤊ 0⤋
There are some non-conforming lenders who will finance you with only 1 day out of bankruptcy. You will be subject to a higher rate though......
2006-09-27 11:51:27 · answer #6 · answered by boston857 5 · 0⤊ 0⤋
It took me less than the 2 years as people said. My credit score was a 630
2006-09-27 12:00:10 · answer #7 · answered by Chocklategurl 2 · 0⤊ 0⤋
every state is different , you should ask the lawyer that did your bankruptcy good luck
2006-09-27 10:23:12 · answer #8 · answered by Anonymous · 0⤊ 0⤋