You can always look into taking over someone's payments for them to stop their bad situation. I see alot of "canned" answers here that don't really help your problem.

Gina,

Another option for 100% financing with a lower credit score in Spanaway or Tacoma, is a VA loan. VA loans are a great way to purchase a home, offering low fixed rate loans and flexible underwriting guidelines. The seller can pay your closing costs and if negotiated can pay off some of your debts. For more information on VA loans in Tacoma, feel free to visit us online at http://www.VALOANSTACOMA.COM

USDA loans offer 100% financing for people with less than perfect credit. There is no mortgage insurance--there are income limits and the property must be located in a rural area. For more information, you can read this post from my nationally recognized blog.

Hi Gina,

You might want to consider credit repair. My guess is that your credit reports have all your old accounts, such as collections, etc and the bk. If you use credit repair you can get rid of all those old accounts and you should get 80-150 point recovery. This would make your credit rating more attractive and then lenders will be more likely to offer a mortgage with good interest rates. Good luck!
http://www.hammeredcredit.com
Hannah Fliegel
415-999-9348

My Company Capital Direct Lending is capable of getting 100% financing for low credit scores. We now have access to $2,000,000,000,000 (Two Trillion Dollars) The Mortgage Crisis is over. My name is Timothy Luther McNair you can reach me at 817-812-8997. After I help you, if you know anyone else that needs help, please do not hesitate to refer me. Thank you.

try FHA...they only require 2.25% down or $100.00 down if you're buying a HUD Repo.
The seller can pay up to 6% of your closing costs....this is w/out the down payment assistance

they dont have a minimum credit score requirement so you can have a 400 and still get approved.
VA loans work the same way, but they dont have any monthly mortgage insurance payments like FHA

To the best of my understanding cuurently 100% financing is difficult to do with a low credit score. I did recieve yesterday a program from one of my lenders for Hud repossessed homes that only requires $100 down and a minimum credit score of 550. The major obstacle I could see here would be that in many cases, not always, these types of homes are in poor condition and require some work.

Gina,
a lot is going to depend on why your credit score is low. Were you approved for a conventional 100% financing such as a Flex 100? Some pmi companies are now calling areas in Pierce county as "soft" and that may have zinged you as well.

FHA does sound like your best bet. And FHA is not going by "soft markets".

Gina - FHA could be your best bet for two reasons: it only requires 2 yrs since your BK was discharged (you'll want to confirm this) and only requires a 3% down payment, which can be a gift. Outside of getting a seller to carry back a 2nd loan (very little chance), these are pretty much your main options with traditional lending. Your BK won't allow you to get A-paper financing, and subprime lenders will want at least 10% down, if not 15 or 20%...

Jeff

Gina - I doubt there is a lender out there who can put together a 100% loan package for you in this mortgage environment. There is some hope, however, if you can locate a seller with a strong equity position who doesn't need to be cashed out right away. If your agent can negotiate a traditional 80/20 purchase offer for you with the seller carrying the 20% on owner financing you might be able to find 80% financing. This type of offer would not require mortgage insurance. This won't be easy because the seller will be concerned about getting their payments from you and will probably want a credit report that will show the BK. You should prepare a letter of explanation with a strong personal commitment that your agent could give sellers who are considering your offer. This may be your only option right now. You'll still need a credit score over 600 to pull this off. If your below that I'd recommend you find a lease/purchase that will allow you to lock in a good price now while you work on your credit and put some time between you and the bankruptcy. Good Luck!!

Hi Gina;
I have been asked that alot lately. As it has been answered to you, there are some FHA programs out there. Windermere Mortgage Services also has some attractive products that can offer you some choices as well. I work with them when I can as they are not only in house and strive to help our clients but also because they have their pulse on any new products and information that is available. You may want to ask your local Windermere agent about them.

Gina....

You may want to consider a FHA loan as they will accept buyers with a lower credit score. Check with you local mortgage broker. Also, you want want to consider working on your credit and saving a bit more before purchasing as most lenders want to see a reserve in you bank account in care you fall on hard times.

Gina,

That is an interersting scenario. There might be a little confusion....

Mortgage Insurance is a fee charged by a lender to cover against loss. It is charged when the amout of your loan is more than 80% of the home's value. A person doesn't qualify for mortgage insurance, it is mandated by a lender when the above scenario of loan to value applies.

Even though things are tough right now with the changes in the marketplace, FHA and VA home loans still remain the best bet for people with lower credit scores. Since you do not have to have a certain credit sore to get a certain rate, qualification is easier. Since you have been building your credit back, it will help to establish a history and that is most important to an underwriter when looking at credit worthiness.

FHA still will allow downpayment assistance, and depending on where you get the assistance, you can possibly get in with nothing down and still have a fixed rate loan that will not adjust in two or three years. As a certified insturctor for the Washington State Housing Finance Commission, I can tell you that funds are still available, but need to be asked for soon, as they go very fast.

VA still lets you go "0" down but unless you qualify to get a VA loan, that may not be an option.

It may seem a bit confusing, but you can accomplish your goal. Even in the middle of the so-called "housing crisis", loans like this are being made to buyers just like yourself everyday.

Hope that helps!

Michael

Try Rhonda Porter with Mortgage Master Service Corp. I recommend her to my family, friends and clients. You can get her phone or email from http://www.rhondaporter.com.