I filed a Ch 7 bankruptcy and it was discharged just earlier this month.?

Question

How or where can I go to find a lender who would aprrove me for a first time home buyers loan. Please help, I am really tired of paying rent and want my own home. Please be specific and please make it pertinent to the United States.

Answer 1

Do you have a down payment?

Before going into buying a home, save up for a down payment. The more you have, the less trouble you'll have getting a loan. Right now is NOT the time to buy a house anyway. The houses will be best in Spring.

Also, find a GREAT underwriter and you'll have better luck. The problem isn't that you had Chapter 7 bankruptcy dischared, it was that you filed it. That is going to haunt you for quite awhile. Be prepared to be turned down and having to defend yourself.

Answer 2

I work for a reputable mortgage banker who is well known nationwide and here are my guidelines:

My loan programs will allow you to go 85% financing (owner occupied - full doc loan - must prove your income with paystubs,W2's or 12 months bank stmts showing large deposits) with a bankruptcy discharged less than a year since the discharge date. That means you can obtain a loan (financing 85% of the purchase price - you would need 15% down - 520 or above credit score). But there are many down payment assistance programs available to qualify you for the 15% down you need. Sellers are eager to let go of there properties (you may even get someone to cover the closing costs). I have a website within my company I can check to see what you qualify for in your county and state. What county are you in? Also, keep paying your rent on time, as the landlord will need to verify your timely payments (counts somewhat as mortgage/rent history - for determining your mortgage rate). The better your rental history the better the rate you'll get.

When your bankruptcy is over 1 year the lenders won't look at it as much, you will get better financing (not have to come in with the 15% down).

Register on this website to improve your credit score, it's free:

https://www.optoutprescreen.com (I've seen this improve credit scores in less than 2 months).... That opts you out of pre-screened pre-approval offers (you are considered less of a credit risk to several lenders).