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

If you look for a new home you will probably find a builder that will pay points and closing costs for you. (Ours did.)

The credit scores you gave are actually pretty good. I was told to be above 550 before I looked for a home and you are WAY above that. The bankruptcy is a none issue to you since you are specifically denied a future bankruptcy for the next 6 six years. Which thereby ensures the mortgage company YOU can't do it again.

Don't really know how they'll see it that your wife Could possibly bankrupt...your mortgage broker will certainly guide you though.

Either way, you can buy a home. Don't think anyone gets zero down nowadays even with spotless credit. Save money as best you can so you pull together a 3% or 5% down payment minimum.

Happy house hunting!

Answer 2

In February 2006, I spoke with the buyer's Countrywide mortgage rep about mortgages post bankruptcy. She informed me that your situation would be considered "C-level" credit, which implies an interest rate around 11 or 12%. A down payment would help lower your rate - but zero down may increase your rate to 12-13%. If you use a mortgage calculator, the monthly payment - with 12% and $140,000 - is $1,440.06 (add taxes and insurance to that amount).

Answer 3

There are many morgage brokers out there and many will get you a morgage. Before you jump in with bothfeet go for a pre aproved morgage,through a broker. Then compare rates with the banks, see where you stand. a pre aproved morgage will help you look in a range that you can afford. However think of the work issue, ensure that your income will be the same and that work is garrenteed. this will be one main thing morgage companies will look for the most is the income to pay .
Most companies want job security b4 giving a morgage, ensure you can have that.

Answer 4

if your bankruptcy is discharged you can, but you will likely pay a higher interest rate.