is there any loans for someone who is a year out of Bankrupt

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Icon Mini Profile loryn316





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Post Posted: Tue Jan 15, 2008 12:41 pm    Post subject: is there any loans for someone who is a year out of Bankrupt
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is there any loans for someone who is a year out of Bankruptcy and a credit score about 600. we are looking for 120-130k with 20-25k down. with all the changes I am not sure what we can do.
Icon Mini Profile larry





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Post Posted: Tue Jan 15, 2008 12:52 pm    Post subject:
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Hi loryn,

Welcome to the forum.

I think to get favorable interest rate and terms, one needs to wait at least Two years after being out of BK. Now your credit score is good. So you may get approved for the mortgage but will be charge higher interest rate.

Best of luck,
Larry
Icon Mini Profile loryn316





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Post Posted: Tue Jan 15, 2008 1:21 pm    Post subject:
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we are needing to relocate to another town though so if i can get a loan and refi later would be great.
Icon Mini Profile larry





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Post Posted: Tue Jan 15, 2008 1:31 pm    Post subject:
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Hi loryn,

Welcome back.

See once you have gone through the Bk process it shows on your credit report for 7 years and drops your credit score. But as you say that your credit score is 600 now, it may be possible that you can be approved for a mortgage but for that you will have to shop a bit for lenders.

Even in this community you can find hundreds of lenders from all over the United States. Just try to contact them at http://www.mortgagefit.com/unitedstates/

Hope someone will surely help you out.

Feel free to ask if you have any further questions.

Best of luck,
Larry
Icon Mini Profile yourbestmtg
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Post Posted: Tue Jan 15, 2008 9:52 pm    Post subject: Dear Loryn..
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You should be able to purchase with 20% down - can you prove your income for the last 2 years? Meaning, obtaining a "stated" income loan will be difficult for you if that is what you are looking for. And, since the BK, have you been late on any payments? You want to pay everything on time after the BK - no late payments on credit at all. Also, be prepared you will probably have to verify you have at least 2 months of verifiable liquid assets (reserves) of principal, interest, taxes and insurance, some lenders will require more.

There are many lenders here to help you! Try a couple and compare what they will do for you. Feel free to ask me any questions...

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Icon Mini Profile Jessica
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Post Posted: Tue Jan 15, 2008 10:35 pm    Post subject: RE: out of bankruptcy - can anyone get mortgage after that?
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I agree with you Lisa in the sense that it's best to compare what some lenders are offering, and not just apply with one particular lender.

But don't you think Loryn can try out for an FHA loan in this situation? I somehow feel that'll be an option because these loans are available to one who has been out of bankruptcy for a year. But yes, it has to be chapter 13 if it's just one year past the discharge.

Moreover, FHA down payment requirements have also been relaxed. So, Loryn, you can try for such a loan. But these loans have limits which vary with the county. You can check out the FHA loan limit available in your county from the HUD website.

Feel free to discuss options that you may have come across.

Regards,

Jessica
Icon Mini Profile ckalvesmaki

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Post Posted: Wed Jan 16, 2008 5:52 am    Post subject:
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is there any loans for someone who is a year out of Bankruptcy and a credit score about 600. we are looking for 120-130k with 20-25k down. with all the changes I am not sure what we can do.

What was the reason for your BK? What is your income? What is your timeline to purchase? There are some options avaialable to you but those options depend on the above answers......Last but not least are you able to prove your income?

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Post Posted: Wed Jan 16, 2008 2:08 pm    Post subject: Answer
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FHA allows for a purchase a year out of bankruptcy is the issue was not one you were in control over and is not likely to occur again. Normally, underwriters are looking for two years out of bk but a year can happen.
Icon Mini Profile larry





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Post Posted: Wed Jan 16, 2008 2:22 pm    Post subject:
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Hi Jeff Selan,

Welcome to the forum.

I have seen quite a few post here and you are giving great suggestions Smile . Are you a lender?
poormary

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Post Posted: Fri Oct 31, 2008 8:10 pm    Post subject: 1 year post bankruptcy
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I have been on my job for 6 years $43300k/yr income and since post 1year bk7 i have been paying my bills on time. I have a total min payment of about $200/mo in cc. my score are TU670, Exp 628 & equif 604. And I am scared to try to get pre-approval. I am trying to get by myself a mortgage for at 150k. Reason for BK hubby has been laid off from job year after yr after yr. And since I debt wipes off, I know I could manage this mortgage. Is it possible for me to get a preapproval. your input is greatly appreciated
Icon Mini Profile jameshogg
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Post Posted: Mon Nov 03, 2008 12:13 am    Post subject:
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Hi poormary!

Have you been discharged of Chapter 7 bankruptcy? If yes, then you will have to wait for 2 years to get FHA loans. If you want conventional loans, you'll have to wait till 4 years after discharge. So I think, you should better wait and improve your credit further and then take a loan. To improve your credit score, you can check the following link:
http://www.mortgagefit.com/credit-rating/credit-repair.html

Thanks.
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