Which bank or broker should I try?

[mommyof3kids]

I would really like to get a home loan before the kids are done with school. As of May 1st we will be considered first time home owners due to renting for 3 yrs as our primary home.

Here are our stats

Forclosure 9/2007
BK filed 9/2007
discharged 3/2008

We would love to be full approval in April and close sometime in May. This would be about 15 weeks before our 3 yr mark for the foreclosure. Reason we filed BK was dh lost his job just as I was giving birth to our 3rd child. It took him 6 months to find another job. We lived in MI and moved to FL for job. House was worth far less than was owed.

Is there anyone specifically that would approve right before the 3 yr mark? Would a credit union be a better place to try than a bank?

Tammy

[Never_Again]

A reputable mortgage broker may be the best person to talk with. Go and sit down with them, explaining your entire situation. He will have several options for lenders and loans, and would be able to target the best source for funding, if it is available.

You may want to talk with two, especially if your quoted rate seems high.

I have a loan originator that I have used for sixteen years, and have followed him through 4 banks. He is the one who referred me to a bankruptcy lawyer, rather than cramming through a debt consolidation/refinance (which he could have done.) He told me that it was not in my best interest to do that, and that he wanted to do what was right for me, rather than just trying to make a buck. That is a reputable person.

[gophermn]

I like Never Again's reply about following someone for several years. Best thing is to talk with others and see who they use and like Never Again, someone they use CONTINOUSLY! I would be hesitant of the " reputable mortgage broker " because I thought i had one coming from a pretty good size company with 5 or 6 offices in the twin cities. Only to find out this guy (most of them) are out for their pocketbook, not yours. In fact I busted this broker committing fraud by signing papers when they should have been signed from the seller. Needless to say this broker knew he f**** up because he called me freaking out when US Bank found out about the scam and threatened his employment.
If you live in the MN twin cities - PM me and I can tell you who this company is.
So be careful of the " reputable mortgage broker " because some of them are crooked.

[mommyof3kids]

Yes the whole find a broker thing is what I am trying to figure. I live in FL. I know a credit union in the area does FHA loans. I wonder if I should transfer everything to them and hope they would allow an exception. I am a SAHM so if we could get a loan to close end of May then I could move us while kids are in school type of thing and get the tax credit plus the tax write off for having a mortgage. We are paying about $4K extra in federal taxes not having a write off. I don't mind the wait as I understand we need to prove ourselves after BK but we are soo close if we can find someone to work with us we would like to.

Tammy

[Tom_Mi]

I would echo the "stick with your mortgage guy" sentiment, with one addition: If he/she likes you but says you're stuck with FHA waiting periods, ask if they have a contact at a small LOCAL bank who does portfolio loans.

Thanks to my mortgage guy's candor, I now have 2 local contacts I plan to call when my downpayment is ready. I'm not even concerned about waiting periods because if you can get a portfolio loan locally it won't matter.

Portfolio Loans explained...
Many mortgage people are drinking loans from the same trough: Fannie/Freddie money, FHA requirements, blah blah blah. Some local banks originate their own loans (called 'portfolio loans'). These banks aren't always concerned with FHA regs, if they realize your situation is fine now.

[ABC]

Yes the whole find a broker thing is what I am trying to figure. I live in FL. I know a credit union in the area does FHA loans. I wonder if I should transfer everything to them and hope they would allow an exception. I am a SAHM so if we could get a loan to close end of May then I could move us while kids are in school type of thing and get the tax credit plus the tax write off for having a mortgage. We are paying about $4K extra in federal taxes not having a write off. I don't mind the wait as I understand we need to prove ourselves after BK but we are soo close if we can find someone to work with us we would like to.

Tammy

They would not be able to "make an exception" on an FHA timeframe as the loan would not be insurable.

Your coming up to the 2 year point where it would be allowed. I would work with a reputable person who was in the business when FHA was used in the previous decade (90's) and have them pull a credit report now. Depending on where you go the minimum score needed would be 620 or 640. You need to make sure you're there and have re-established credit since your BK. Also, sometimes 5% or 10 % down will help your loan go thru FHA loan system.

[oldhack]

They would not be able to "make an exception" on an FHA timeframe as the loan would not be insurable...

FHA has guidelines, not hard-and-fast rules. And, while it's true that FHA can choose which lenders via which it offers loan insurance, it's the lenders who set the parameters. For example, currently FHA 'suggests' at least a 620 FICO mid-score for borrowers -- soon to be 640 or 660, I understand. But, lenders are free to approve someone with a lower score until FHA decides their portfolios are too dangerous to further serve.
I certainly wouldn't go into the process expecting an exception. The guidelines are there for a reason, and those pushing those limits ARE default risks. But, exceptions DO happen.