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

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.

larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:36 | Post subject:

loryn316's picture
loryn316 | Joined: January 15, 2008 11:41 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

we are needing to relocate to another town though so if i can get a loan and refi later would be great.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:36 | Post subject:

larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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yourbestmtg's picture
yourbestmtg | Joined: October 27, 2007 12:16 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Jessica's picture
Jessica | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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ckalvesmaki's picture
ckalvesmaki | Joined: January 28, 2006 06:28 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

[color=Red:9a4ed7a153]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.[/color:9a4ed7a153]

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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

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larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jeff Selan,

Welcome to the forum.

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

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi poormary!

Have you been discharged of [url=http://www.mortgagefit.com/bankruptcy/chapter7.html]Chapter 7 bankruptcy[/url]? 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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