What would interest rate be?

[dustinc]

What kind of interest rate might I be able to get if I'm 2 years out of BK with a credit score of 680?

[justbroke]

For a mortgage? There's no telling. A lot of the underwriting will determine what you should get, especially what's on your credit report. There are too many factors, including your down payment, loan to value (LTV), combined LTV, the actual lender, program, etc.

Also, being 2 years out of BK, may not be enough time to get the best rates. They will also look at whehter you surrendered or had a home foreclosure during that period as well.

[dustinc]

What if debt to income is low and I didn't have a foreclosure. Only thing is the bk. I wasn't even late on credit card payments before the bk. Could I expect an interest rate at 8% or 5%?

[justbroke]

I would hope, and think, that you could get something close to 5-6%. Banks are tough right now, so you will need a down payment as well. High DTIs aren't allowed anymore anyhow (for traditional loans), so I'm not worried about that. I'm worried about how much money you're putting down and the LTV. Your middle credit score is a little low these days for a "lower" interest loan. What is your middle score anyhow? I'm hoping 680 isn't the best score (top).

[df04527]

Just to add a little clarity on the 680 score. Did you have a bank/mortgage broker pull that score for you? The reason I ask is that you have to be very careful as there are several scoring models in use today. The only scoring model that matters, in your case, is the model used strictly by the mortgage lender - no other score will be used. So if you saw a 680 on a 3rd party service or even if it's from one of the bureaus directly - that is not your mortgage score.

I hope that added clarity as opposed to mud..... if it got muddy i didn't mean for that... and yes -- also the mid score is used of the three.

[tobee43]

we got 5% but did 100% owner financing....

see if you can work with a broker that may do a land contract so you can wrap around someone elses low interest mortgage....just a thought.. and good luck!

[dustinc]

I would hope, and think, that you could get something close to 5-6%. Banks are tough right now, so you will need a down payment as well. High DTIs aren't allowed anymore anyhow (for traditional loans), so I'm not worried about that. I'm worried about how much money you're putting down and the LTV. Your middle credit score is a little low these days for a "lower" interest loan. What is your middle score anyhow? I'm hoping 680 isn't the best score (top).

I got the score from fico.com. I only know my one score. Would 10% down payment be enough? I will be using some equity in my current home as part of that 10%. I'm worried I'm not going to be able to get a house now and I need to move. I'm actually thinking about next year. I'm only one year out right now. I have two credit cards and am never late. No judgments or anything. No foreclosure.

[justbroke]

I got the score from fico.com. I only know my one score. Would 10% down payment be enough? I will be using some equity in my current home as part of that 10%. I'm worried I'm not going to be able to get a house now and I need to move. I'm actually thinking about next year. I'm only one year out right now. I have two credit cards and am never late. No judgments or anything. No foreclosure.

I can't tell you what the underwriters will think. You still need to get your "middle" FICO score. FICO scores are no longer available for Experian via myfico.com so it will be difficult to see the middle score.

What's the real motivation? You need to move? Out of State or just out of the current home? What's the real sale value in the current home; I mean, could you actually NET 10% on the sale after commissions and closing costs?

[chrisdfw]

If you can meet FHA guidlines you can qualify for the same rates as everyone else with as little as 3% down.

but your property needs to be under the loan limits, etc.

[tobee43]

If you can meet FHA guidlines you can qualify for the same rates as everyone else with as little as 3% down.

but your property needs to be under the loan limits, etc.

i really think i agree with that...however, from what has been in the newspaper banks are going to begin to ask or require 20%....like they did in the late 70's...now, that's going to stop many from getting a mortgage with such large down payments...i would think.

[ABC]

i really think i agree with that...however, from what has been in the newspaper banks are going to begin to ask or require 20%....like they did in the late 70's...now, that's going to stop many from getting a mortgage with such large down payments...i would think.

That's for QRM or qualified residential mortgages where they have to set aside 5% of the loan as reserve. FHA and VA aren't included.

[tobee43]

That's for QRM or qualified residential mortgages where they have to set aside 5% of the loan as reserve. FHA and VA aren't included.

i hope so.....i know our first mortgage was a plain conventional mortgage and required 20% in "those" days.....NOT an FHA...or VA...