It is a process and not always quick to do what you are working on. Do not get discouraged and hang in there.
When I get the results, I'll call you and we can go from there.
Is that easy or what?
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
Brokers Guild Cherry Creek real Estate
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 firstname.lastname@example.org
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.
I wish you much success in the future.
Keller Williams DTC
Feel free to contact the lenders on my site below under "service providers"
Best of luck. Hang in.
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
The Kentwood Company
Hope that helps,
Aspen Real Estate
Wishing you well.