my credit rate is in the high 500 I just came out of bankruptcy last year how can I buy a house

Asked by abcdef, 46201 Wed Jul 1, 2009

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Jennifer Far…, Mortgage Broker Or Lender, Noblesville, IN
Tue Jan 21, 2014
LOL...seriously, why is this a question coming up 4.5 years later? It takes only two years since Ch 7 BK discharge per FHA Guidelines and three years for conventional. If there was a mortgage included in the discharges then you add one more year to each of those. Either way, you should be fine by now if you have re-established credit and a minimum credit score of 620. Please call me if you would like me to get you a pre-approval.

Jennifer Farmer
1st Signature Lending LLC
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Sat Aug 11, 2012
well, since he asked this question over 3 years ago.....the good news is - he may only have a few years to go before he can qualify for a loan....hopefully, his credit score has improved over the years, too
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Danny Der, Both Buyer And Seller, Outside U.S.
Sat Aug 11, 2012
Banks don't lend with such a credit score, however there are options if you deal with an investor. Some will offer Seller Finance or Lease to Own options if you meet a certain conditions such as having a job (income) and/or down payment. Email me (investor) if you want some info. I or my associates may be able to help.

0 votes
Nina Williams, Agent, Avon, IN
Wed Jul 1, 2009
Check out this guy w/Southwest Funding.

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Don Tepper, Agent, Burke, VA
Wed Jul 1, 2009
Plenty of ways.

The answers below are fine if you limit yourself to conventional financing. But there are lots of other ways: Lease-purchase, lease-option, contract for deed, Subject To, land contract, use of a land trust (with you as the resident beneficiary), and seller financing.

Most of those get you into a property, and give you time to improve your credit (and build up that time from date of bankruptcy) before you go out and get traditional financing. With "Subject To," you actually acquire ownership immediately.

Hope that helps.
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Jason Dipers…, , Haddonfield, NJ
Wed Jul 1, 2009
If it was a chapter 7 you won't be able to do anything now. If it was a 13 you will need to have filed it two years ago and discharged a year ago. Even so, you're going to have a very difficult time getting an approval. Your best bet is to rent for a year, keep a clean pay history and above all make sure you do not have any late payments on your credit report after the discharge. Even one late credit card payment after a BK discharge is a disaster. Good luck to you.

Kind regards,

Jason Diperstein
E Mortgage Management
800.793.9633 ext. 156
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Laura Musall, Agent, Fishers, IN
Wed Jul 1, 2009
I would suggest that you get with a mortgage lender or bank, and begin the process of repairing your credit. A good mortgage company or bank will be able to tell you the steps you're going to need to take in order to qualify for a mortgage, but I'll be honest, it's not going to happen overnight. If you'd like some names of local people you might want to work with, let me know.

Good luck,
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Dave Woodson, , Portage, IN
Wed Jul 1, 2009
Like Dana said, you need to be out of BK two years, and you score should be a little higher. I am working with lenders that will go down to 560 for a purchase. FHA has always been a common sense loan and if it make sense it can be done.

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Dana Schuster, Agent, Slidell, LA
Wed Jul 1, 2009
In addition,you must wait for 2 years after discharge of bankruptcy before you can purchase. Buying a home is not in the cards for you right now.
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Mark Jacobs, Agent, Mooresville, NC
Wed Jul 1, 2009
The lowest credit score you can have right now is about 620. Some banks may go lower but the rate is going to be much higher.

Mark Jacobs
0 votes
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