Home Buying in 53224>Question Details

Jtriggz, Home Buyer in 53224

I recently filed bankuptcy and I am looking to by a home. I will be a 1st time buyer. what should I do?

Asked by Jtriggz, 53224 Thu May 21, 2009

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Your going to have a very difficult situation. If you can find any financing at all it will at such a high rate that it would prevent it from making financial sense. Generally accepted advice for someone in your position is not to force the issue; take a few years and rent. Prove a strong deposit record from auto deposit and re-enter the housing market in a few years and from a stronger perspective.
1 vote Thank Flag Link Mon Oct 19, 2009
Extend your lease for a couple of years, build your credit back up, no late payments, have three open accounts paid as agreed every month from now on. Keep the balances low on credit cards, belwo 25% of the limit. Save as much cash as possible. If your rent is $500 a month and you apply for a house payment with a payment of $1,000 and you havent; saved $500 a month the underwriter is going to scratch his/her head over that. Good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Sat Apr 7, 2012
1. Consult with a loan officer for guidance on your future financing options.

2. Look for properties that can be purchased with your situation as is. A good local broker would be helpful.
0 votes Thank Flag Link Sat Apr 7, 2012
First of all, your answers you have been given so far are pretty good! The TYPE of loan you will be getting is very important involving the ANSWER you are looking for! What is the date of the DISCHARGE of your bankrupcty???

For example: VA & FHA Loans have a minimum of 2 years from date of discharge. HOWEVER, under VERY extenuating circumstances, the will do it LESS than 2 years!

USDA is an option, but I would have to check on the Bankrupcty rules...While they DO vary from FUNDER TO FUNDER, I am fairly confident that you would not get approved inside 2 years there either..I will check tho and get back to you!

Everyone is correct! YOu need to speak with an EXPERIENCED lender asap!

Check out my blog on USDA loans by clicking here! http://activerain.com/blogs/krovy

I have done several blogs on 100% USDA 1st time home buyer loans...so there is alot of info in there...like, what you need to provide, property address..etc...My email is Darin@osmwi.com

Thanks so much!

0 votes Thank Flag Link Thu May 28, 2009
You could also consider buying a home on a real estate contract, assuming you can find a seller willing to carry a contract for you in light of the bankruptcy filing. You will, of course, need a substantial downpayment to mitigate the bankrupcty in the eyes of the seller.
0 votes Thank Flag Link Thu May 21, 2009
You should contact a lending professional to help you get on the right track to re-establishing your credit. The eligibility for most lending programs today is 2-3 years from the discharge date of the bankruptcy. However, with a Guaranteed Rural Housing loan, you need to re-establish your credit to a middle score of 620 and then there is no minimum time frame for the discharge of the bankruptcy. However, the property must be in a "rural" approved area and there are strict debt to income requirements and income limits.

So, again, your best bet would be to contact a lender.

Hope that helps!

Linda Williamson
Loan Officer
Patriot Mortgage Services, Inc.
0 votes Thank Flag Link Thu May 21, 2009
The first thing you should do would be to talk to a lender! A bankruptcy usually effects your credit for at least 2 years. Which bacially means that you have to be discharged from your bankruptcy for 2 years before you can obtain credit again. A lender would be able to tell you exactly where you currently stand, when you can expect to be able to purchase, and how much of home you can comfortably afford.

To begin your home search prior to finding out this information would just be a waste of your time. Knowledge is power! Find out where you stand first, and if you're unable to buy right now, ask the lender what steps you need to do to repair your credit. Follow their advice, and you'll be able to purchase down the road.

If you don't have a bank or a mortgage lender that you're comfortable working with, I'd be happy to refer you to some good people.

Good luck to you!

Debbie Bingham
0 votes Thank Flag Link Thu May 21, 2009
Depending on the age of your filing and the type of filing you may be out of luck for a few years. It typically takes 3 years of recovery to be approved to buy a home. Contact a local mortage broker and run the question by them. You never know! Good luck!
0 votes Thank Flag Link Thu May 21, 2009
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