We are just out of a bankruptcy and are wanting to purchase a home again. We have no money for a down payment. Can a down payment on the home be financed along with the mortgage?
2007-10-01 05:26:44 · 14 answers · asked by catsaver001 3 in Business & Finance ➔ Renting & Real Estate
This will depend on your cicumstances and the lender's policy. Some lenders are pretty unforgiving. Any BK on the bureau is an auto decline. They may re-consider you based on the type of BK, whether they lost any money, and what's happened since. The bank I used to work for did it this way. At least 2 years, not single slip since them...not a late payment, all new credit clean and that bank can not have lost a cent. AND there must have been a mitigating circumstance...the BK can't have been your fault. Losing your job or getting divorced are not acceptable reasons. Someone got sick -- that's pretty much it.
The bank I work for now doesn't have an auto decline. If the first line review can't accept the loan, it goes to an underwriter. Our criteria is that it was FILED at least 24 months ago, and discharged. It's just one factor of a huge puzzle. The lender really makes a difference in your chances.
2007-10-01 06:03:57 · answer #1 · answered by Debdeb 7 · 0⤊ 0⤋
Yes, in some cases, but you can't because you are just coming out of BK. You must rebuild your credit and get your credit score up into the seven hundreds to get a 100% cconventional loan, maybe six hundred eighty will do it on a full document, but it will be tough. FHA offers you your best choice, but you need at least two years in between the discharge and the purchase, unless your BK was a Chapter 13, then you can buy now, if you paid the chpt. 13 on time during the whole time. You will have to get a buyers assistance program in order to go 100%, and that is when the down payment is financed into the mortgage, as well as most of the closing costs and prepaid items. Contact your local mortgage company and you probably want to talk to two of them at least.
2007-10-01 05:33:45 · answer #2 · answered by H. A 4 · 2⤊ 0⤋
Why not WAIT instead of getting yourself back into the same financial mess that lead you to the bankruptcy court to start with.
First, you CANNOT finance a downpayment. Second, no bank will loan you (including FHA) 100% financing with a recent bankrupcy.
Wait 4 years, maintain PERFECT credit, and then apply with an A-paper bank so you won't have to Rob Peter to pay Paul and end up with a foreclosure too...b/c THAT will bar you from buying a house until both falls off your credit.
There is a difference between needs and wants...if you have an apartment, you don't "need" a house.
2007-10-01 06:43:48 · answer #3 · answered by Expert8675309 7 · 0⤊ 0⤋
There is no lender that will will finance a down payment on a mortgage to a borrower that just came out of a banruptcy. 100% financing is becoming harder and harder to get. You should wait at least 2-3 years before you buy again especially if you have no money to put down on a home. First and foremost work on rebuilding your credit and saving up for a down payment because now you wouldn't qualify for any type of loan that would be beneficial.
2007-10-01 06:02:58 · answer #4 · answered by smiley20903 2 · 3⤊ 0⤋
A while back lenders were very hopped up to give 100% loans, or an 80% loan plus a 20% loan. But these are many of the people who are really having trouble with their mortgages now, and since house prices are nosediving, the house isn't worth what is owed on it. So lenders are avoiding those kinds of loans for now.
If you are just out of a bankruptcy, you may have a hard time getting any kind of a loan this soon, as you have shown your financial irresponsibility.
2007-10-01 05:35:53 · answer #5 · answered by Flatpaw 7 · 0⤊ 0⤋
That would be a no down payment loan. Your credit has to be perfect since your bankruptcy and you will probably need 2 years from the discharge date if you want 100%financing. http://www.choicerealestate.net/
2007-10-01 07:42:39 · answer #6 · answered by Anonymous · 0⤊ 0⤋
The sub prime mortgage mess was in part due to loans like you are talking about 100% financing to folks with less than stellar credit.
Do yourself a favor. Rent for two years or so. Save the downstroke. Improve your credit score. Then apply for a loan. You'll be in much better shape.
2007-10-01 08:00:20 · answer #7 · answered by Tom J 3 · 0⤊ 0⤋
these are the bank rules on BK
BK 7, 11 or 12 due to hardship 2 years before acceptable for loans
BK filed under 13 2 years with re established credit
BK 7,11 and 12 due to mismanagement discharged 4 years with re established credit
IN all cases a single late payment after discharge makes you ineligible for a loan
2007-10-01 07:36:25 · answer #8 · answered by Fabio G 3 · 0⤊ 0⤋
- You sign a contract of purchase and sale with the seller and any other parties involved in the deal - You give a deposit AFTER your appraisal and home inspection come out smelling like roses (or is acceptable enough for you to move forward) - Down payment gets taken on the day of completion prior to obtaining title of your newly purchased property (along with the rest of the purchase amount which will come from the mortgage lender).
2016-04-06 22:39:26 · answer #9 · answered by ? 4 · 0⤊ 0⤋
if you just got out of a bankruptcy, forget about buying a house for at least 2-5 yrs - you won't get approved, even if you have downpayment- and you'll never get it with nothing down anymore, so start saving and don't get into credit trouble again
2007-10-01 05:55:35 · answer #10 · answered by Anonymous · 3⤊ 0⤋