Home Buying in 30058>Question Details

Mary Hampton, Renter in Lithonia, GA

I'm not sure what my credit score is and with me recently filing bankruptcy, what are my chances of getting in a first time buyers program

Asked by Mary Hampton, Lithonia, GA Fri May 31, 2013

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Hi Mary,
A lot would depend on how "recent" the BK was. FHA mortgages are the least restrictive for a previous bankruptcy. HUD requires that a minimum of 24 months must have elapsed from the DISCHARGE date of a Chapter 7 Bankruptcy before a borrower can be eligible for an FHA mortgage.

For a Chapter 13 Bankruptcy, then you must have made at least 12 on time payments. Additionally, you must also have permission to purchase from the Bankruptcy Court.

In the time since the Bankruptcy, there should be no new derogatory items such as late payments, collection accounts, liens, judgments, etc. Having late payments after a Bankruptcy is often viewed as a disregard for the importance of credit. It also reflects that you are still having financial struggles.

If a mortgage was included in the Bankruptcy, HUD requires that you must wait at least 36 months from the foreclosure date to be eligible for an FHA mortgage. Sometimes, the foreclosure happens well after the Discharge Date of the Bankruptcy. If the mortgage was not re-affirmed, there is not much that can be done until the property get foreclosed on.

Also, if the original mortgage was a government backed loan (i.e. FHA, VA, USDA), you must wait at least 36 months from the date that HUD paid the claim on the defaulted mortgage. This can sometimes be months after the original Foreclosure Date Until the 36 months on the claim has passed, you will not have a clean CAVIRS report which is required for an FHA mortgage.

Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.


Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
1 vote Thank Flag Link Fri May 31, 2013
Listen to Rodney he's right. You probably need to give me a call and explain your situation in detail and then he can assist you with where you stand.
0 votes Thank Flag Link Fri May 31, 2013
I would say your chances are slim and none...depending on when you filed for bankruptcy.
0 votes Thank Flag Link Fri May 31, 2013
When was your bankruptcy discharged? Was it Chapter 7 or 13? Chapter 7 we can approve a FHA loan (3.5% down) 3 years after discharge. Chapter 13 could be much earlier depending on the situation.
0 votes Thank Flag Link Fri May 31, 2013
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