Financing in Nashville>Question Details

sean, Home Buyer in Nashville, TN

18 months since a chapter 7. Credit score is at least 660, and I have 10% to put down. What are my chances of getting a mortgage?

Asked by sean, Nashville, TN Fri Jan 25, 2013

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8
Hi Sean, congrats and bouncing back! You're doing great but unless you have a full 20% to put down on a new home you're going to have to go for an FHA secured loan. FHA will only insure mortgages two years after the discharge if “the borrower has re-established good credit (or has chosen not to incur new credit obligations), and has demonstrated an ability to manage financial affairs.” So the good news is in 6 months you should be good to go and I'd love to help you find a place!
1 vote Thank Flag Link Wed Jan 30, 2013
There is a new program for FHA by HUD for people in your shoes you just need 12 months from the date of the Bankruptcy, short sale or foreclosure.

The U.S. Department of Housing and Urban Development (HUD) recently announced the “Back to Work – Extenuating Circumstances” program, aimed to help people who have lost their home through foreclosure, short sale or bankruptcy. HUD has reduced the previously required minimum of 36 months to 12 months before they may be able to finance another home, given that they meet HUD’s minimum eligibility requirements.
0 votes Thank Flag Link Sun Sep 1, 2013
Sean, you're well past the 24-month "dead" period by now. Are you ready to go talk to a lender but don't know who to contact? Send me a note (sfelton@realtracs.com) and I'll offer several excellent lenders to contact. Let's get this party started!
0 votes Thank Flag Link Sun Aug 18, 2013
Wow! Great job! It is good to see someone who has taken a challenge and overcome to fix their credit. There are so many people who delay or try and look for loop holes that don't exist. It is good to see someone take this challenge seriously. I agree with the other posts. You should be on track in the next several months to start talking to a lender who will put you on the right track for the home stretch. If I can be of assistance, don't hesitate to contact me.

Chuck Campbell
615-315-1425
0 votes Thank Flag Link Thu Jan 31, 2013
Sean,

OK congrats on your hard work. Now I will ask you a question. The credit score is about 660 and that is a good number,

HOWEVER, I just found out myself that there is a hidden credit score :/. I have been monitoring mine for the past 5 years to make sure that when I want to buy a home I was good.

I was told my CREDIT score was 410..... and I told that guy he was cracked in the head and pulled out all the credit scores that I had. He says there is a different credit score that people do not know about and that is how they determine if you get a loan for a home.

I am really angry too, because I paid out all that money over the five years to these "Credit" watchers :/

Oh well... so am working with my bank to get me a home "One" day.
0 votes Thank Flag Link Wed Jan 30, 2013
There are different models that lenders use and that is why it is always beneficial to have a lender run the report even if it is 6 months before you buy. This will allow you time to fix any minor issues that appear on the report.

Rory Lithgow
Branch Manager
Home Lending Source
615-627-4868 Office
Flag Wed Jan 30, 2013
Sean,

Kathryn is correct for FHA it is 24 months form the discharge date. Let me know if I can help you in anyway. I am a direct lender in Nashville, Feel free to email me if you have any other lender questions.

Thanks,

Rory Lithgow
Branch Manager
Home Lending Source
615-627-4868 Office
615-577-5626 Main
615-627-4920 E-Fax
rlithgow@thehls.com
0 votes Thank Flag Link Fri Jan 25, 2013
You are definately moving in the right direction. I agree with Kathryn that most lenders are going to want to see positive credit for at least 2 yrs. My suggestion would be to speak with a lender and get some solid answers to your questions. That is there area of expertise. I would be happy to recommend several lenders who could assist you. In the meantime, I would continue improving your FICO score and continue to SAVE more money for your down payment. Ideally, you would like to have 20% down payment so that you can avoid PMI (private mortgage insurance). And also, you will need to save some money for your closing costs and prepaids. Many times, we can negotiate with the Seller to contribute to these costs, but it doesn't hurt to be prepared to pay them your self. If we are able to get the seller to absorb these costs for you, then you have a nice little nest egg to help you will any renovations you might want to do to your new place.

Please visit my website at http://www.SoldonNashville.com. Feel free to call me if you have any questions.
Terry Booth
Benchmark Realty
615.582.4783
0 votes Thank Flag Link Fri Jan 25, 2013
CONGRATS! Looks like you are working hard to get things turned around for you!

The way I understand it Sean, is that it takes 24 months to sign on the dotted line. But, since it may take 1-3 months to find a home and another 30 days to close, you are right on time.

Your best best is to get with a lender and he/she can walk you through step by step. I have a couple of lenders I work with, that are great and my clients have loved them. I am NOT a finance agent so they know the very latest.

I would love to help you make this next Real Estate move. But whatever you do I wish you continued success!

Sincerely,
Kathryn Grindstaff
http://kathryngrindstaff.com/
615.456.4462 Direct
0 votes Thank Flag Link Fri Jan 25, 2013
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