I think you are right there. BK over 2 years with good reestablished credit and a 640+ Fico should get you an FHA loan today in the neighborhood of 3.75% if you are paying your closing costs. If you do not want to pay closing costs you can elect for a 4.25% for example which will give you a 2.5% or so lender credit that can be applied to your closing costs.
Couple this with the fact that you are a first time homebuyer (if you have not owned property in the past three years) and you can get down payment assistance for your down payment covered with exception of 1/2% by utilizing the CHDAP program with the FHA.
It is a great deal and I would love to help you with this. Please feel free to contact me at 916-813-4003 or email me and we can set a time to discuss. You are so close. It is worth a try!
Sounds like you've really worked hard over the past few years! You should really be proud of yourself...and excited! It's a great time to be shopping for a home.
My colleagues below have given some great answers. And yes, you most likely will qualify for an FHA loan.
Here are the first steps that you would need to take to develop a plan of action to get into your first home.
1. Create your professional team. Contact a Realtor with a good reputation, and one that you click with. It may take a few Realtors to find the right one. Make sure they don't start by showing you homes - make sure they sit down with you and discuss options, process, etc.
2. Have them refer you to a trusted mortgage broker. Your Realtor and mortgage broker will work as a team to make the process go smoothly.
I hope this helps you out. Happy house hunting!
And if you need additional help...
Keller Williams Realty
As long as you meet the rest of the guidelines you are probably going to fall under the FHA umbrella (as you are not yet eligible for a conventional loan with the BK just over two years ago). In this case your credit score doesn't mean much, as everyone gets pretty much the same pricing under FHA (with the occasional, slight exception).
If you were locking in something today you could expect your rate to be right around 4%, maybe a little lower, maybe just a tad higher, somewhere in the 3.75%-4.25% range, even with a 643 FICO score.
You should fit in to an FHA loan very well. More then likely you will get very close to the best rate. FHA pretty much buts all credit into one category with just a little hit to costs. you may pay .1255 higher in costs. ie. $1000,000 loan would equal $125 more then someone that had a FICO score of 700.
Best thing to do is call Glenn Olsson for the Loan and if you do not have a Realtor you trust call me.
Board of Directors-CAMP
Calif. Association Of Mortgage Professionals
Real Estate Services
Sales/ Mortgage Training & Assisting/ Insurance
Licensed as James Collins with the DRE # 01014820
Best of luck to you.
Try Evelyne Jamet at Vitek--916-452-8800
She has many great programs for first time buyers and can get you dialed in.
It would be hard not to get a good interest rate with a score over 640, but the best person to talk to would be Chris Stahl at Summit Funding. he can be reached at 768-8000. He can give you more specifics.
No matter what interest rates are lower than they were 2 years ago so you're in a better position. Good luck!