Need Mortgage, Where to Start???

I think you should just find a lender or broker and tell them the situation and see what happens. We went through our local housing authority to take advantage of an awesome first time buyer program. They referred us to a broker who approved our loan. We had to go with FHA which is pretty easy and I'm sure you would qualify. We have a 3 year old Chapter 7 and had no problems.

Kim

 

Somebody at wife's work gave us a name of a real-estate owner/broker...he ran some numbers on his computer...(NOT A CREDIT REPORT)...told us we could go "UP-TO" $XX,XXX house.

"GRILLED" us for what we want...
# of bedrooms
# of baths
# space garage
where in city
etc

Called the next week and we had an appointment to "look" at the houses...we eventually found something (took a couple of weeks)...put an offer to buy on it with $1,000 earnest money...they took it (couple of weeks from forclosure)...we had a meeting with the loan officer filled out tons of forms and was APPROVED on the spot...

 

Question. If you had a chapter 13 BK that was discharged in 2001, would it not fall off your report in 7 years which would be 2008?

Your scores are great. Is your income good? Do you have a lot of money for a down payment?

Good luck.

 

NiceGuy

Unfortunately, your chap 13 BK won't drop off until 2008. It stays on your file for 7 years after discharge, not filing. That said, there are some non-conforming lenders that will probably be able to get you a loan. You won't be eligible for FHA for about another 6 months(if memory serves me right, you have to be discharged from BK for at least a year to qualify for FHA, though it may be 2 years). Your scores sound extremely high for someone so newly out of a BK. What do you base your score info on?
None of the conforming lenders that I work with(and that is most of them) will offer anyone a mortgage that recently out of BK. There are several other questions that would need to be answered before I or any other mortgage person could give you an honest answer as to what you would need to do to qualify. If you wish, you can email me off board and I will try to give you more direct assistance.

fla-tan

 

You are right about the BK 13 date. Sorry about that.

OK, you filed 11/96 and discharge will be 11/03. Beacon score 700.

Well, you should not have a major problem getting a mortgage based on credit.

You could start by saving for a down payment. Have you figured out where you want to live?

Good luck house hunting.

 

Niceguy,

It's my understanding that you can qualify for FHA financing 1 year post chapter 13 bk and 2 years post chapter 7. As a previous poster pointed out, many states have first time home buyer assistance programs.

 

We are getting 7% on a 30 year fixed with 3% down. That is with a median score below 600(599 to be exact) but FHA doesn't care what your score is so it was perfect for us.

They require BK to be at least 2 years old(Chap 13 could be different) and you have to have no derogatory info since the BK or in the last 24 months if BK is older than 2 years. I have one 30 day late pay from March 2001 and it was an automatic denial so we did it in my husband's name and it went through just fine.

Here's a good link with all of their info
http://www.fhalibrary.com/

Kim

 

NiceGuy,

Way to go! Also, another perk to FHA is they go through an exhaustive inspection process before the loan can close. Much more through and picky than conventional lenders. For a seller, it's a PIA but to the purchaser it is a decided plus. A lot of little stuff you may have had to fix will get repaired by the seller.

 

Also make sure you get your own home inspector, FHA is known for doing extensive insepections, but keep in mind they inspect the odd things, such as if you need a railing b/c of the number of steps, paint chipping, window cracks etc. But they do not really look at the crucial things that could cost you dearly in the long run.

 

Question for you guys while on the subject of home inspections....

Typically at what point do you get your own done? After your bid is accepted or further in the process. My lawyer had wanted us to get it done before we even signed the contract right after they accepted our bid.

(This was 2 years ago, but we decided to wait until end of 2002 in order to save more money and clean credit.)

 

i am in a similar situation - i am a first time buyer and i want to get a home by this year end. but i have 2 derogs - bith from 2001. scores are less than 600 - in 590 range.

so based on what Kim has mentioned, i will not be able to get FHA loan anytime this year??? it will go as automatic denial???

Kim do you knoe anything more about this automatic denial process?

i am trying to understand if there is any hope for me this year - or do i have to wait for 2 years.

 

KittieKat3,
I agree with your attorney, however, many sellers won't wait until you can get your inspector out there.

However, if they want you to sign the contract prior to having an inspection of your own, have it added as a contingency - "This property must pass inspection by our own privately hired inspector or this contract is null and void"...something like that.

For everyone else....please be aware - back when I bought my house in 97 (FHA), it was overappraised 20k. And FHA did NOT send someone out there even though they were supposed to! In addition, I have heard of appraisers taking kickbacks.

HIRE YOUR OWN PEOPLE...DO NOT TRUST just because it's FHA that everything will be okay. I did and I got bit.

 

Thanks SweetnSas!

 

I just went through FHA financing, and as far as i know, you can still qualify for FHA with some derogs...I had one, but it was a paid collection, and they just asked that i send a letter of explanation. From what I understand, for an FHA loan a Chapter 13 BK needs to be discharged for...below is copied from the HUD/FHA website
You can find the info at
http://www.hudclips.org/
"A borrower paying off debts under Chapter 13 of the Bankruptcy Act
may also qualify if one year of the pay-out period has elapsed and
performance has been satisfactory, and the borrower also receives
court approval to enter into the mortgage transaction."
"A bankruptcy (Chapter 7 liquidation) will not
disqualify the borrower if at least two years have passed since the
bankruptcy was discharged"
"Collections and Judgements. We do not arbitrarily require that
collection accounts be paid off as a condition for loan approval,
but we do require that court-ordered judgments be paid-off before
the mortgage loan is eligible for insurance endorsement. (An
exception may be made if the borrower has been making regular and
timely payments on the judgment and the creditor is willing to
subordinate that judgment to the insured mortgage.)"

I went through Countrywide for my house loan. they were really nice and made most of the process fairly effortless...they are at www.countrywide.com You can try to prequalify online.

 

I had a great person, too, who talked to me for hours about my personal situation (BK7) and got us all nice and approved for a nice FHA really simply.

His name is Don Semler...nice, nice man and he is at aimloans.com. Did it all online and the lowest rate possible (at the time of our closing)

 

Do you have a chap. 7 BK. If not your derogs only need to be 1 year old.


you could buy this year.

Kim