Florpink, Home Buyer in Green Valley Ranch,...

I want to buy a home but dont have such good credit about 3000 in debt that im paying off right now and a bankruptcy in 08 i have 10000 for a down pay

Asked by Florpink, Green Valley Ranch, Denver, CO Tue Jan 4, 2011

can I buy a home

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If you do not have a recent credit report, go to http://www.annualcreditreport.com. Pull your credit report, save on your desktop.(pdf file). You can send the report to your agent so that another report will not be pulled. A number of inquiries may lower your credit score. If you have a score of 660 or higher, you are bankable now. There are a few "no down" programs still available, keep your 10,000 in the bank for reserves. IF your score (lowest) is less that 620, call a competent agent first with experience. Experienced agents are experts in financing, and can prequalify you before you see a lender. An experience real estate broker will know which lender will be best for you after the first consultation. Feel free to call if you still don't have a broker.
0 votes Thank Flag Link Tue Apr 3, 2012
I agree with the people that recommended that you get with a quality lender to discuss the situation. By attempting to correct issues without guidance there is a risk that I would not recommend. Use professionals, ask your friends, relatives or real estate agent for referrals to high quality agents if you do not know of any personally.

It is a process and not always quick to do what you are working on. Do not get discouraged and hang in there.

0 votes Thank Flag Link Wed Jan 12, 2011
All great answers below! The only way to really find out? Dive in! I can do an online pre-approval within 24 hours at no cost to you. Just go to http://www.KarinFischerLoans.com, click on the "Pre-Qualify" tab and answer the questions. I get an automatic email when you are done, alerting me to the application.

When I get the results, I'll call you and we can go from there.

Is that easy or what?
0 votes Thank Flag Link Wed Jan 5, 2011
You have gotten lots of good answers and some creative ideas, like Vicki Porter who suggest a lease option. By now I think you get the idea that the answer is "maybe" depending on the extenuating circumstances involved in your bankruptcy, like whether or not you had a foreclosure along with the bankruptcy. Assuming you did not have a foreclosure, your bankruptcy was discharged a full 2 years ago, you have a credit score of 620 or over, you are currently employed as a w-2d employee, and you really are ready to buy a home I would recommend a couple of options that are geared towards buyers who like you, are on the edge in terms of loan qualifications.

The first choice would be to investigate a loan utilizing US Banks's American Dream program. This program requires that you income qualify- much like many affordable housing programs, and that the house be in good repair - like FHA. Depending on your situation you may be able to qualify for a loan with just 1000 down. This is a 30 year fixed rate loan at a competitive interest rate and there is no deed restriction on the property. The loan is held in a portfolio by US Bank

The second option might be to go FHA which is slightly more lenient on your qualifications but requires 3.5% down payment from the borrower. However, if the down payment is a hurdle, you may be able to get CHFA (Colorado Housing Finance Authority) funds to purchase your home. check out: http://www.chfainfo.com
Both the American Dream program and CHFA aim to help people own their own homes, and both require that you attend an 8ish hour workshop/class that will help you get prepared for home ownership. It will help you understand not only the mechanics of buying a home but what happens after you actually buy the home. If you want to pursue any of these options I would suggest contacting Paul Marokus at US Bank: 303-778-2292 or email Paul @ Paul.Marokus@USBank.com

And of course if you need an experienced Realtor we hope you will consider calling us. These are just a couple of programs that come to mind based on what you have disclosed- there are likely other options that you can look into in your quest to own a home. Whatever you do have fun- buying a house is hard work, for the Realtors, the lenders and yes even the buyers and sellers- but it also can be fun. It is an exciting adventure and a great learning opportunity so go out there, do your research, get your self prepared and find a home.
Best of luck
Carole & Greg
0 votes Thank Flag Link Wed Jan 5, 2011
There are great opportunities in this buyers market. I recently closed a home where the down payment was only $100 and the seller paid all closing costs. The buyer put down $1,000 earnest money and at closing was given back a check for $900. There are also up to 2.5% Down Payment Gift Funds that you may qualify for. With either of these programs and having the seller pay your closing costs you can buy your new home, pay off your $3,000 debt and have $1,000's left for your move. I will be happy to help you find your dream home.

John Coyner
Brokers Guild Cherry Creek real Estate
0 votes Thank Flag Link Tue Jan 4, 2011

The agents all have good answers here. What you are seeing is variances based on their experiences. Here are a couple key components to your potential based on my experience with 8 years as a mortgage banker.

The first thing I would be curious to know is if there was a foreclosure tied to the bankruptcy at all? If so, this could impact the amount of time needed to wait before buying. Seond, have you rebuilt your credit since the bankruptcy? Meaning did you open new credit card accounts to establish positive discplined use of credit? If so, great. If not, It is likely your credit score won't be high enough to qualify to buy a home. Revolving credit is one of the most important components of getting your score up after a bankruptcy. Now on the bankruptcy, it depends on if yours was a chapter 7 or 13? That too will have an impact, but if it is a chapter 7 then it will be 2 years from discharge date for your next FHA loan, and longer for a conventional mortgage.

The most important thing I work with people on after a bankruptcy occurs is to make sure their credit is in shape prior to looking at houses. You will want to make your your scores are high enough, your debt ratio is in perspective, and all aspects are covered. The last thing I am sure you want to do is to find the perfect home, and then find out you have to wait to buy it.

You don't necessarily need to talk to three lenders, you really need to find one good lender who you are comfortable working with. Afterall, in your situation you don't need one of those three lenders to lead you to believe they can help you and make it sound like you don't have a care in the world when applying for a loan in today's world after what you went through. But you need someone to be understanding, explanative, educational, and experienced with your type of situation. Wen I work with folks like you I tell them we are better off taking a little extra time to make sure we uncover any potential hurdles upfront, before it comes back to haunt you close to closing. Your real estate agent will respect that kind of lender as well.

If you would like you can reach out if you feel comfortable. You can reach me at rwilliams@summit-mortgage.com


Ray Williams
Branch Manager
Summit Mortgage
Web Reference: http://www.fhacolorado.org
0 votes Thank Flag Link Tue Jan 4, 2011

Can you buy a home? The answer is yes, but when.

I recommend you talk with a mortgage Broker, someone who has been in the business a while, you can actually hurt your credit by prepaying your bills, your credit score is the unknown here, you have plenty of down payment and the bankruptcy is at least 2 years old.

FHA is requiring a credit score of 600, but most investors that buy FHA loans want a 650 score, so 650 it is.

most of the other rules that will effect you are

2 years after BK is discharged
2 years on the job or same type of job
3.5% down payment
monthly payment of no more than 45% of your gross monthly income.

These are the biggies, there can be other hurdles as well, but most are easily over come if you have the right people on your side.

I'd love to chat with you about your home buying and your loan.

Tony Kerstiens
0 votes Thank Flag Link Tue Jan 4, 2011
All good answers, and the consensus seems to be "maybe". As others before suggested, mine would be to talk to a reputable lender and let them guide you to either get qualified now for a loan or how to improve your situation and credit score to get qualified as quickly as possible.
I wish you much success in the future.

Chuck Strauss
Keller Williams DTC
0 votes Thank Flag Link Tue Jan 4, 2011
There are a lot of great answers here. I would just chip in that the best thing you can do is talk to three lenders. Each lender has its own rules, costs and rates. In short, some will be more lenient than others.

Feel free to contact the lenders on my site below under "service providers"

Best of luck. Hang in.

0 votes Thank Flag Link Tue Jan 4, 2011
Most lender require 2 solid years for a BK prior approving any loan.

If you have only $1000 for down payment would not qualify you for a loan BASED on what you authored in your question. Only way to determine contact a mortgage broker direct. If your credit is below 630 then most likely be declined for a loan

Direct Link to assist you :

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Tue Jan 4, 2011
Another option, and something we have just closed on with another buyer in a much worse situation, is a seller financed property. That is very similar to what Vicki suggested below with a lease to own option.
Web Reference: http://www.StuartDobson.com
0 votes Thank Flag Link Tue Jan 4, 2011
My suggestion is to talk to a lender. They make the ultimate decision on whether they will give you a loan or not. If you would like a recommendation of lenders I work with regularly, I am happy to provide those to you.

Good Luck!

Leslie Heldenbrand-Monaco
The Kentwood Company
Web Reference: http://www.LeslieMonaco.com
0 votes Thank Flag Link Tue Jan 4, 2011
Yes, but maybe not yet. If your credit is below 640, you may not be able to qualify for a loan even if you have good income and a good down payment. You should work with a lender who can help you improve your credit score. You might want to look into buying a home now through a LEASE PURCHASE. There are sellers who want to sell their home, but who do not need to sell their home to be able to move. Such sellers might be willing to rent the house to you now with an agreement that when you get your credit repaired, that you will buy the house. A lease purchase allows you to get into a house now with your down payment money as a deposit, and you pay rent to the seller for 6 months, a year, whatever you agree to. It is a great way for a buyer to lock in a purchase price now while prices are low, and is a good way for a seller to sell a property during a slow market.
0 votes Thank Flag Link Tue Jan 4, 2011
First step is to talk to a lender and see exactly where you're at in terms of your credit score. $3K in debt isn't too bad, and $10K down is pretty decent. If you purchased a $200K house, you'd have enough for the minimum of 3.5% down ($7K), plus money left over for some closing costs. Let me know if you need the name of a good lender. Then once you get prequalified, I'd be happy to help you search for a home.

Web Reference: http://www.sallygrenier.com
0 votes Thank Flag Link Tue Jan 4, 2011
You can buy a home and I have a program that would be perfect for you and it is 100 percent financing, 30 year fixed. It does require that you go to a free workshop and they may put you on a plan to get you on track to buy a home. My e-mail is stevensellsco@gmail.com and my website is http://www.stevensellsco.com

Hope that helps,

Steven Wright
Aspen Real Estate
0 votes Thank Flag Link Tue Jan 4, 2011
You'd be surprised for what you might be able to qualify. There are some variables but what you've mentioned above may be something you can work through. The worst case would be that you may need some guidance in building up your score. Most lenders will lend to you once you've been two years away from the bankruptcy. We have a program that helps people build their credit with no cost or obligation. We'd love to show you some things to make yourself eligible to take advantage of the market we are in.
Wishing you well.
0 votes Thank Flag Link Tue Jan 4, 2011
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