Is it possible to purchase a home with a Bankruptcy and a credit score of 560?

Answer 1

Right now, your only real shot is through FHA. Requires a 3% downpayment, no minimum credit score, great rates, relatively cheap mortgage insurance, and basically all they'd want to see is that you've been clean on your credit for the past 12 months.

You'd need a 575 score to get conventional 100% financing. Paying off a credit card or two can easily get you there.

Answer 2

Absolutely!! We are in the process of buying a home right now. We close in one week. We have a bankruptcy and a credit score of 560. We are getting an FHA loan and the 3% down payment is being rolled into the loan as well as the remaining closing costs. The seller of the home which is brand new, paid $6,000.00 towards closing costs. It is very much possible. I have two bankruptcies on my record and my husband has one on his. We also had collections in there that we paid off. You can do it!! Good luck!!!

Answer 3

Depends on how strict they are in your area. I'm not a realtor or attorney but in my experience if you find a highly motivated seller you can usually work something out.
You don't have to go with a conventional mortgage. You can do an owner-finance with a land contract. You buy the house like you are paying rent, only some or all of the monthly payment goes toward the purchase price.
You would have a problem trying to buy a million-dollar house with a regular mortgage from a bank, but you probably could swing a starter home with the method I just described.
Good Luck!

Answer 4

Well, yeah. These days, some of us sellers are so desperate, we'll sell to anybody. The hard thing will be getting financing, but the lenders are still pretty loose. The sub-prime lending that you need is drying up quickly, but if you hurry, I think you might still be able to qualify somewhere. Just keep trying.

If you find an owner willing to hold back a mortgage, that may be the easiest way, but mortgage companies might also consider it.

Answer 5

Don't be fooled by some of these responses and those who tell you they can help you. They may be predatory lenders and people of that ilk. Your chances are slim - FHA might help but the type of house you are probably eligible for is not going to be great - and really, if your finances are in such disarray that you have declared bankruptcy and have such a low credit score, sounds to me like you need to take an accounting of your spending and your budget before you get yourself in over your head again. This idea that people like you whose finances are in a complete shambles want to own property again is really disgusting. There are way too many of you irresponsible types out there.

Answer 6

It's always possible, since you could get seller financing, but really unlikely that you'll get a mortgage at all. If you do, you're going to pay a much higher interest rate.