Buying a house after Bankruptcy

[tinroofrusted]

*tap tap tap*

AHEM.

DO NOT WORRY ABOUT YOUR CREDIT SCORE!!!!


Make sure that you are worrying about what is on your credit report, and that it is being properly reported.

[tinroofrusted]

I have the same questions. I am waiting for our BK to discharge the market is HORRIBLE right now. Houses are expensive here in Oralando, Fl My husband is a Veteran. Can we use the VA loan option? I would like to buy in around two years, so we can save around $9,000 for a down payment. Will that be an aduaget down payment? Will we have to pay closing? or will that make it so we can only buy less of a house?

Also I was looking into Modular Homes, would we be able to go that way? (not the mobile homes, the real homes shipped to site) the housing market is out of control here and we are on a Deputy Sheriffs pay. Pre BK our credit score was very low, will it go up right after BK (confused on how anyone could have a 600score and need to file BK if you are able to pay on your credit on time how and why would they file BK????)
Thanks for any advice

Suzie

Sorry, but if you've filed BK, the VA loan won't allow you to go through them for a house.

I also would not recommend purchasing a Modular, or a mobile home. The market to have them financed is at about 0 right now, because they depreciate, rather than appreciate. In fact, we don't work with ANY lenders who will even touch mobile home purchases or refinances!!!

BUT, $9000.00 is a great start for a down payment. In fact, we have some stick built houses in our area that go for about the same price as a mobile home. I would definitely look into that first!

[HRx]

Sorry, but if you've filed BK, the VA loan won't allow you to go through them for a house.

This information isnt correct.......you simply have to wait two years from your filing date, and must have re-established good credit, in order to utilize your VA Loan benefit, after filing for Chp7 BK.

[tinroofrusted]

This information isnt correct.......you simply have to wait two years from your filing date, and must have re-established good credit, in order to utilize your VA Loan benefit, after filing for Chp7 BK.

Sorry.I should have clarified that.

I just didn't want someone coming and looking two months out of discharge, and thinking they could do that. I got ahead of myself.

[crackerbear]

We were approved for a VA loan 2 years out of discharge in March of this year. We found a house in April and closed in June.

[MTG_BANKER_OH]

Sorry, but if you've filed BK, the VA loan won't allow you to go through them for a house.

I also would not recommend purchasing a Modular, or a mobile home. The market to have them financed is at about 0 right now, because they depreciate, rather than appreciate. In fact, we don't work with ANY lenders who will even touch mobile home purchases or refinances!!!

BUT, $9000.00 is a great start for a down payment. In fact, we have some stick built houses in our area that go for about the same price as a mobile home. I would definitely look into that first!

Another thing besides the fact that VA will allow you to purchase a ome after BK is that a modular home and a manufactured home is not the same thing.

Manufactured Homes are sometimes called doublewides, singlewides. They are not treated as a stickbuilt home. Loans are a little more stringent on these types of homes, but they are not impossible. You just have to work with someone that knows what they are doing. Manufactured Homes can be financed through FHA, but are subject to structural inspections. Usually issues with thiese types of homes being attached real property, as far as a title search is concerned.


Modular Homes are homes that are brought in piece by piece and assembled on the job site and look like a regular Stick Built home. The financing does not differ from regular hoime financing. These homes are actually built better then a regular house because the frame is manufactured in a temperature controlled factory and them brought to the job site. I hope this clears up some of the confusion and bad information that is being passed around on this board.

Also you only need a 580 score to pruchase a home after the Discarge of a Chapter 7 BK with zero down. And you can buy a home while in a Chapter 13 just as long as the trustee Approves and you have a 12 month Chapter 13 Pay history. You can be approved for this loan with FHA OR VA while in a Chapter 13.

Nick Kusan
Professional Mortgage Consultant
"Top 25 Greater Columbus Home Mortgage Lenders," as Published by Business First

[tinroofrusted]

Another thing besides the fact that VA will allow you to purchase a ome after BK is that a modular home and a manufactured home is not the same thing.

Manufactured Homes are sometimes called doublewides, singlewides. They are not treated as a stickbuilt home. Loans are a little more stringent on these types of homes, but they are not impossible. You just have to work with someone that knows what they are doing. Manufactured Homes can be financed through FHA, but are subject to structural inspections. Usually issues with thiese types of homes being attached real property, as far as a title search is concerned.


Modular Homes are homes that are brought in piece by piece and assembled on the job site and look like a regular Stick Built home. The financing does not differ from regular hoime financing. These homes are actually built better then a regular house because the frame is manufactured in a temperature controlled factory and them brought to the job site. I hope this clears up some of the confusion and bad information that is being passed around on this board.

Also you only need a 580 score to pruchase a home after the Discarge of a Chapter 7 BK with zero down. And you can buy a home while in a Chapter 13 just as long as the trustee Approves and you have a 12 month Chapter 13 Pay history. You can be approved for this loan with FHA OR VA while in a Chapter 13.

Nick Kusan
Professional Mortgage Consultant
"Top 25 Greater Columbus Home Mortgage Lenders," as Published by Business First

Forgive me, but the mortgage company that I work for WILL finance purchases as long as you are discharged out of BK, and have a score above 500. In fact, we even have day after discharge financing.

We also consider modular and mobile homes to be in or near the same category, and will not finance them because of their depreciation. Therefore, I don't look at saying that as "giving bad information." I personally wouldn't consider purchasing either because you can nowadays get a stick built home for about the same price. And in fact, fewer and fewer companies are financing doublewides OR modulars because they depreciate so rapidly, and are not considered a good investment. Here in Michigan, unless you go through a private lender, you can finance a modular or mobile, ONLY if you have more than 50% down, or to refinance, more than 50% equity.

The best advice? Every lender is different! Have a nice day.

[MTG_BANKER_OH]

Forgive me, but the mortgage company that I work for WILL finance purchases as long as you are discharged out of BK, and have a score above 500. In fact, we even have day after discharge financing.

We also consider modular and mobile homes to be in or near the same category, and will not finance them because of their depreciation. Therefore, I don't look at saying that as "giving bad information." I personally wouldn't consider purchasing either because you can nowadays get a stick built home for about the same price. And in fact, fewer and fewer companies are financing doublewides OR modulars because they depreciate so rapidly, and are not considered a good investment. Here in Michigan, unless you go through a private lender, you can finance a modular or mobile, ONLY if you have more than 50% down, or to refinance, more than 50% equity.

The best advice? Every lender is different! Have a nice day.

Modular homes do not depreciate. They are the same as any regular home, infact you would not be able to tell the difference if you have ever seen one. Modular homes are not doublewides, yes typically manufactured homes do depreciate it just depends on the area they are located in. I have done several Manufactured homes and they have appreciated over the years. You can obatin Fannie/Freddie financing on a modular home 100% and a manufactured home 95%. You need to be in the business a little longer before you make acusations about the amount of money down needed on a manufactured home or amodular home which are not the same. I work with modular home builders and there is no issue getting them financed with any normal conforming loan no matter what state they are in. I work with at least 40+ lenders. You have to understand that people that are coming on this board do not know better and may take your advice as gospel and may miss out on a good deal on a home. You can not make general acusations that no lender will do them unless they are a private bank, it is just not true. There are a large number of LARGE banks that will finance manufactured homes. I think you may be getting the two mixed up (manufactured/modular). I thought that when I first started out also, I would not make general comments on public message board when I was not really sure what the difference was.

[tinroofrusted]

Modular homes do not depreciate. They are the same as any regular home, infact you would not be able to tell the difference if you have ever seen one. Modular homes are not doublewides, yes typically manufactured homes do depreciate it just depends on the area they are located in. I have done several Manufactured homes and they have appreciated over the years. You can obatin Fannie/Freddie financing on a modular home 100% and a manufactured home 95%. You need to be in the business a little longer before you make acusations about the amount of money down needed on a manufactured home or amodular home which are not the same. I work with modular home builders and there is no issue getting them financed with any normal conforming loan no matter what state they are in. I work with at least 40+ lenders. You have to understand that people that are coming on this board do not know better and may take your advice as gospel and may miss out on a good deal on a home. You can not make general acusations that no lender will do them unless they are a private bank, it is just not true. There are a large number of LARGE banks that will finance manufactured homes. I think you may be getting the two mixed up (manufactured/modular). I thought that when I first started out also, I would not make general comments on public message board when I was not really sure what the difference was.

Sir, I am telling you, we don't finance them, and we put modular and doublewides in the same category for financing with my company. I am not getting the two mixed up, and I do know what I am talking about. Thanks. I hope people don't come to this board, read everything that you say and take it for the gospel either.

And I would LOVE to hear about these LARGE banks that finance manufactured homes. We can't find a ONE that will unless you have about 50% down. And what of refinancing? We find that when we have appraisals done nearly 99% of the time all of them depreciate.

Like I said before, things are different from state to state as well. We have offices in 8 states, and every one is different.


EDITED TO SAY: I still also support looking at a stick built before ever considering a manufactured home of any type. They are often times cheaper and/or around the same price!

[MTG_BANKER_OH]

Sir, I am telling you, we don't finance them, and we put modular and doublewides in the same category for financing with my company. I am not getting the two mixed up, and I do know what I am talking about. Thanks. I hope people don't come to this board, read everything that you say and take it for the gospel either.

And I would LOVE to hear about these LARGE banks that finance manufactured homes. We can't find a ONE that will unless you have about 50% down. And what of refinancing? We find that when we have appraisals done nearly 99% of the time all of them depreciate.

Like I said before, things are different from state to state as well. We have offices in 8 states, and every one is different.


EDITED TO SAY: I still also support looking at a stick built before ever considering a manufactured home of any type. They are often times cheaper and/or around the same price!

Have you ever heard of Washington Mutual? Trustcorp? Ohio Savings Bank? Fifth Third Bank? There are about 20 more. Also why are you getting an appraisal on a manufactured home if you can not do them anyway?

[StaciMM]

It is a given that different brokers work with different lenders, and what one may not do-it is possible that someone else does. THE END.

Can we move back to topics that are more constructive? Such as, what are the requirements for someone to be approved for a mortgage after BK? (Specifics, please.) Give examples, like for XYZ lender, you'd need a score of such-and-such, and so many open TL's, and so much $$ in liquid funds.

Some questions I have-and I'd love to see the experts debate these-when is it appropriate to do stated or no doc, and what does this accomplish? I've seen the terms, and know what they mean roughly, but why would you go this route?

[tinroofrusted]

It is a given that different brokers work with different lenders, and what one may not do-it is possible that someone else does. THE END.

Can we move back to topics that are more constructive? Such as, what are the requirements for someone to be approved for a mortgage after BK? (Specifics, please.) Give examples, like for XYZ lender, you'd need a score of such-and-such, and so many open TL's, and so much $$ in liquid funds.

Some questions I have-and I'd love to see the experts debate these-when is it appropriate to do stated or no doc, and what does this accomplish? I've seen the terms, and know what they mean roughly, but why would you go this route?

Good idea.

Ideally, the best time for someone to purchase a home would be at least two years post bk with rebuilt credit history, and proof of rent payments for at least 12 months. For credit scores, our only requirement is that it be above 500. I also would suggest a substantial down payment. Not only is it good to have equity in your new home, but it's also a good idea because lenders are going to want to see that you can pay for a home as well. The down payment helps. Time on the job is the second most important thing. Make sure to have a good and positive employment history!

Stated or not.... that's a toughy. I try to stay away from these as much as possible!! We do work on them however. It just depends on what the circumstances are to be honest with you!

[Genenco]

Our Ch. 7 was cleared in Nov. 2003. We are currently saving for a down payment for a home. We have read that we will need 20% down and that our ch. 7 will have to be cleared for 2 years. Is this true? We currently have not opened any credit cards, and our cars are paid for. We are making monthly payments on our student loans.
What steps do we need to do to ensure that we can get approved for a house loan?

(Note, this is NOT legal advice, but advice from a lawyer I know)

Most mortgage companies tell us that after 2 years, bankruptcy doesn't hurt your chances of buying a home, so long as you are otherwise qualified.

[MTG_BANKER_OH]

(Note, this is NOT legal advice, but advice from a lawyer I know)

Most mortgage companies tell us that after 2 years, bankruptcy doesn't hurt your chances of buying a home, so long as you are otherwise qualified.

To obatin conventional financing you need 4 years out of a BK but to obatin an FHA loan you only need 2 years out. FHA has the same rates as conventional rates ans only requires a 3% down payment, which can be gifted from the seller to obtain zero down loan. FHA is your best option for a good rate 2 years out of a BK. The most important thing is that you reestablish credit as soon as possible after the BK, and make sure all of your accounts in the BK are reporting correctly after the BK. The easiest thing is to get a $300 credit card and use it every few months and pay it off. If you are looking to buy a home right out of Bk or refinance your home after BK it can be done. You only need a 580 to get a 100% purchase loan one day out of discharge.

[Genenco]

To obatin conventional financing you need 4 years out of a BK but to obatin an FHA loan you only need 2 years out. FHA has the same rates as conventional rates ans only requires a 3% down payment, which can be gifted from the seller to obtain zero down loan. FHA is your best option for a good rate 2 years out of a BK. The most important thing is that you reestablish credit as soon as possible after the BK, and make sure all of your accounts in the BK are reporting correctly after the BK. The easiest thing is to get a $300 credit card and use it every few months and pay it off. If you are looking to buy a home right out of Bk or refinance your home after BK it can be done. You only need a 580 to get a 100% purchase loan one day out of discharge.

See, this is what bugs me. I mean that now with the new laws, like the old ones. In reality, you'd be considered "Gold" as you couldn't do a BK for a long time now.

However, I can also see that any lender who isin't careful, would end up being burnt like a chicken in a overloaded broiler......