Can we get a mortgage with a Bankruptcy on file?

Question

My wife and I are planning on moving to Texas and when we do we want to buy a home as opposed to renting.
My wife has a 630 credit rating and I have a 625 credit rating. However, I had a bankruptcy discharge in my name only one year ago.

Will we qualify and what should we expect a monthly payment to be on a $140,000 home. Can we get zero down? What kind of interest rate should we expect?

Any help would be appreciated.
David

Answer 1

Yes you can. You will have to go with a non-conforming lender. There are a lot of lenders that will give you a mortgage one day out of BK. Depending on the lender you can get 90% to 100% financing. Your best chance of getting 100% financing is if you no lates for the last 12 months on your current mortgage or lease and no new negative credit since your BK.

You won't be able to know what your rate will be until you speak with a mortgage broker and he reviews your credit report. I work for a large non-conforming lender. With your scores and no new negative credit, you should be able to get a 7% to 8% interest rate being a year out of BK, which isn't bad. If you are planning on moving soon, I would go ahead and call a mortgage broker in your area and get the ball rolling. You just need to find a broker that is licensed to do business in Texas, which shouldn't be a problem. Many brokers are licensed to do loans in many different states now. Look in your yellow pages for morgage brokers or mortgage loans. You will probably see many that work with people who have credit problems. Find one that you can work one on one with as opposed to trying to do your mortgage on line.You won't get the kind of service you need trying to do your mortgage on line.

Please don't believe it when people tell you that you can't get a mortgage because of your BK or that you will have to have a huge down payment, because that just isn't true. There are tons of programs for people with bad credit. If you can't get a clear 100% loan, there are 80/20 combo loans and all kinds of different programs. Just make sure to pay all of your payments on time and don't go out and make a big purchase, like a car, before you get your mortgage.

If the first broker you talk to doesn't sound like he can help you, don't be afraid to call several. Just remember you are looking for one that works with less then perfect credit. They are a dime a dozen now a days, so it shouldn't be a problem.

You can get a mortgage!!! Good luck!!!

Answer 2

You No. Her maybe there are a number of mortgage firms that will love to qualify you, but don't!!!!!! You will be sorry,
Rent for now and save your money for a down payment of at least 7% of value by that time your bankruptcy will be cleared in seven years. Values are going down don't be in a hurry

Answer 3

I know several loan officers who can get this done. Email me at [e-mail] I believe you can get 0 down. With the real estate market cooling, this is the time to buy as prices are close to bottoming out.

Answer 4

Not without a *substantial* downpayment.

---You're new to the area.
---New job histories
---Bad credit (both)
---BK less than 5 years

That's four strikes and you're out.