hi. I filled bk over 2 years ago. my credit in now at a 643. what kind of interest rate can i get?

Asked by Lore83, 95823 Tue May 1, 2012

I have made sure to monitor my credit since the bankruptcy and manage my money a lot better. i have not had any lates since then and i was able to get 2 credit cards and an auto loan. now i want to purchase a home and i am nervous because i would be a first time home buyer and i want to get a good interest rate. i feel i am ready to buy but is my credit score good enough to get a decent interest rate? plz help. thank you

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Tue May 1, 2012

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.

0 votes
Tony Singh, Agent, Elk Grove, CA
Fri Nov 30, 2012
I'd recommend meeting with me to discuss you're options I'd love to help you out. (916) 236-5686 or email me at tsingh@aresrealty.com
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Michael Smith…, , Roseville, CA
Wed May 2, 2012
Hi Lore83,

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!
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Gina Borges-…, Agent, Sacramento, CA
Tue May 1, 2012
It sounds like you are on the right track and have been working hard on your credit. Rather than guess about an interest rate, I would suggest you consult a lender who can pull your credit and advise you. Once you have the pre-qualification done then I could assist you. But for now, you need a lender. I suggest you call Ken Lawrence- Silverado Mortgage at 530-223-2065 or Jean Chan at 916-726-2429. If you need assistance with your home search, I am here to assist you. Good Luck!
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Morgan Larson, Agent, Folsom, CA
Tue May 1, 2012
Hi Lore,
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...
Morgan Larson
Keller Williams Realty
0 votes
Jamie Collins, Agent, Fair Oaks, CA
Tue May 1, 2012

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.

Glenn Olsson
Board of Directors-CAMP
Calif. Association Of Mortgage Professionals
Sacramento Chapter

Jamie Collins
Real Estate Services
Sales/ Mortgage Training & Assisting/ Insurance
916-257-3779 direct
877-810-2763 fax
website: Connectrealty.com/jcollins
Licensed as James Collins with the DRE # 01014820

Best of luck to you.

0 votes
Doug Jones, , 95126
Tue May 1, 2012
After two years you qualify for an FHA loan. The rates are in the low 4 percent range. Today in the mortgage loan world there is really no tier system; it either is approved or not and you go into the best rate box. FHA allows you to put down as little as 3.5% - there are up front mortgage insurance and monthly mortgage insurance fees but the rates as so low now that it is still a good loan.
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Kylee Roe, Agent, Sacramento, CA
Tue May 1, 2012
Your interest rate will probably be higher than the advertised "Teaser" rates of 3.875% or so. Not sure the 643 credit score is high enough though. Best bet is to talk to a lender and get an idea of what's available for loan programs for you.
Try Evelyne Jamet at Vitek--916-452-8800

She has many great programs for first time buyers and can get you dialed in.

Good luck
0 votes
Sue Archer R…, Agent, Palm Harbor, FL
Tue May 1, 2012
Interest rates are not tied to credit as much as they were a few years ago, when they had the myriad of packages like prime, subprime, stated income loans and all flavors in between.

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!
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