FHA mortgage loan and down payment assistance

[lvkafamily]

Hello,
It has been 3 years since I was successfully discharged from Chapter 7 bankruptcy. The bankruptcy was due to a failed business and never really affected my personal employment or bill payment ability.

My credit score is 660+ and I was approved for an FHA loan for 275K in PA. As I will be paying for relocation out-of-pocket and won't have a lot of cash lying around for other expenses, I was wondering if there are lenders who could give me a loan for the 3 1/2% down payment that FHA loan requires. I have a decent job, positive employment history and never had issues with mortgage payment on a house I sold last year.
I rather not use my 401k for the down payment but will consider it if I have no other options. Thanks in advance for your information!

[tobee43]

welcome to the forum. it's not likely you will get the likes of a just of as low as 3.5% even with excellent credit nowadays. most lenders what at least 10% if not more. if you really want to buy the house can't you rent first and save for the down payment. also, why are even considering even buying with no money down? it may not be the right time for you if that's the case. the days of no down payment as far as i know are over, even with excellent credit. the only person i know getting such a deal may be directly from a builder if you are lucky enough to find one that holds the financing. good luck to you!

[lostinnola]

I am 4 years post BK but less than 3 years of a property being taken out of my name. I am in underwriting right now on a mortgage for a USDA guaranteed loan (exception due to employment that has been corrected). In that loan you need 0% down but they required me to have 3.5% of cash reserves in my bank in case of loss of employment. I would take the 3.5% out of your 401K for a down payment. I don't think you are allowed to take a loan for the down payment. Good luck with the process.

[tobee43]

how did you make out???

[lostinnola]

I made it through my lenders underwriting. I am waiting to hear from RD. I am supposed to hear something this week and will let you know. If RD approves, I can close within 2 days.

[lostinnola]

Just wanted to throw it out there that we closed today on our mortgage. We were a little more 3.5 years post discharge but less than 3 years since our house was taken out of our name. We were able to get through with a USDA guaranteed mortgage. What is funny is that the mortgage company sold our loan to JP Morgan Chase. JP Morgan chase won't give me a credit card but they bought my mortgage. LOL.