Purchasing My First Home

[Immaraia]

Hello,

I am trying to purchase a home by the end of the year. My bankruptcy will be 2 years old in September of this year. I have got 3 credit cards which I pay in full every month. What is the best loan to apply for? What are my chances of obtaining a mortgage? How do I raise my credit score about 600 by October when I am at 585 right now? Any other suggestion or knowledge is welcomed as well.

[Klesko]

Your best bet two years out of BK is a FHA loan, unless you have a significant amount to put down. FHA generally requires a 640 score or higher and 3.5% down.

If you have 0 credit card debt reporting right now then you are at 0% utilization which is good. However you need to pull your credit report and see what is good and bad on it and then start working on the bad items. You can go from 585 to 640 pretty easily normally but you must eliminate bad data and replace it with good.