Buying a house after Bankruptcy

[sobroke]

Oh, I forgot to tell you. This mortgage broker I contacted said that in the subprime market, you do not have to pay PMI insurance. Has anyone heard of this? I do not think this lady knew anything. She obviously wasn't specialized in dealing with subprime lenders. She didn't even understand why my house went into forclosure during the bk. HELLO....it is just a technicality for the lender to get the title back. The forclosure was the main problem...not the bk.

[StaciMM]

I wouldn't say that there is no PMI w/ subprime-but it is safe I think, to say there are ways around PMI. Such as doing an 80/20 loan.

[StaciMM]

My personal home buying goal-get at least 2 of my FICO scores over 640 (though 620 will do) by August. I'll be doing a full doc loan with First Franklin. With a score over 620, they'll do full doc w/ only 1 year employment verification-which we need as Dh changes jobs and has been w/ his current one since May 05. We'll do the loan as a refi, since we are in a lease purchase arrangement and can prove we've been making the payments. We'll have the option of taking cash out-not sure if we're going to but if we do, it will be to finish a bedroom, bathroom, and misc. room in the basement. If the market rates stay the same, we'd be around 6.5%. (Higher rate if not at 640, of course.)

I'm around 600 now on my FICO's, and in June my last late payments on my student loans will be 1 year old, and some new accounts will be 6+ months old, so I think the 640 is doable.

[sobroke]

I definitely think 640 is doable. Good luck StaciMM. I am trying to do it now with a score of 624. DH is 630. I will let you know. I am working with several mortgage brokers to see who can get the best rates.

[OnlyBrokeOnce]

Here's a new kink the in the question scenario.

Both DH and I are self-employed. We arent' going to lose our house in BK. We're current, never missed a payment and have about 30K in equity. We'd like to sell the house after the BK and use the equity for a downpayment on a larger home.

However, income is the issue. What about no-doc loans after BK?

[StaciMM]

Depending on scores, you'll have options. To do a true 'no doc' loan you'll probably need to be high 600's. If you can verify a steady flow of income w/ bank statements, you may be able to go limited doc. The more documentation you can provide, the better you can do on a homeloan.

[robivi3]

640 score with good equity is absoulutely no sweat. maybe one year from discharge would help also. Very doable.

[Pinktiger]

FHA Loans don't require PMI. Neither do Rural Development loans. Both are government backed loans that help people with low scores and low down payments. The 80/20 loans are conventional loans meant to go around the PMI, also.

[sobroke]

Well...it is happening! We were discharged and closed in Nov.05 and three months later...we got preapproved for a house. Our mid scores are 630 and 635. We have to have 5% down and our rate is 8.5%. Our broker is great and we go and talk to our builders tonight! Hopefully we will be in a house in 3-4 months. Good luck to all of you. If you want any more details, shoot me a PM.

[SunTzu]

Chapter 7 Bk, we got help!!

We (my husband and I) were in a real pickle. We were trying to buy a home here in Tampa, and happened to bump into this guy in our area which is Tampa. He was really helpful and helped us get into a home with no money out of pocket, and even had our closing costs picked up by the seller. Now keep in mind we had decent scores but he made it a lot easier than we thought it woud be... check him out at www.atriummec.com. I don't know if you are in Tampa, but if you are Stuart is a cool guy there. That is who we dealt with at Atrium Mortgage Equity Co.

Sandra & Michael

[StaciMM]

Congrats! I'm not sure if you can get the rate re-worked in the next few months, but if you can-keep in mind you're not far from 640 and that would be a better APR.

Well...it is happening! We were discharged and closed in Nov.05 and three months later...we got preapproved for a house. Our mid scores are 630 and 635. We have to have 5% down and our rate is 8.5%. Our broker is great and we go and talk to our builders tonight! Hopefully we will be in a house in 3-4 months. Good luck to all of you. If you want any more details, shoot me a PM.

[mandy2778]

foreclosure or bankrupcy

is foreclosure better thank bankrupcy we are already 3 months behind on our house. I believe we should just file b/c we do not make enough to pay our bills anyway need some advice. thanks

[StaciMM]

Mandy-that is a big question and not alot of info to answer it. If you post more about your overall situation (no personal details) in the BK forum, you'll get alot of feedback I'm sure!

[mandy2778]

thanks well our situation is that we are about $800 short every month to pay our monthy bills. we have about $15,000 in credit card debt. we have alreadly had a free consultation with a bk lawyer and he definitely recommened the ch 7. my husband seems to think that we are ruined for 10 years and the only loans no matter what kind they are will all be very high interest rate.

[JeepMom]

mandy-not to be rude but this isn't thre place for that question, might I suggest you place it here: http://www.bankruptcyforum.com/f6-chapter-7.html