Bankruptcy Home Loans - When can I buy a home?

I'm often asked, can I buy a home if I've had a bankruptcy? Absolutely! Now, for obvious reasons, you can expect to pay a higher rate on your mortgage than those who haven't had a bankruptcy. You actually have a couple of choices when it comes to purchasing a home after a bankruptcy. You can get your mortgage through a non-prime lender, or seek out an FHA Loan. Whichever mortgage lender type you go with, be prepared to produce an explanation of the circumstances of the BK, as well as the documentation and schedule of debtors. You'll also need to have re-established some credit in most cases, to show the mortgage lender that you can now handle paying your bills again. You needn't be a novelist to write you BK explanation letter, your mortgage broker can help with that. At our company, it's no big deal to help 20-30 people each month at writing their explanation letter for Bk's. We know what the mortgage lender is looking for and what format they like, so relax when it comes to this part of the loan. They really just want to know what the circumstances surrounding your BK were, in layman's terms. There are basically two kinds of personal bankruptcies that mortgage lenders deal with; Chapter 13, where your debts are reorganized and paid out over time and Chapter 7, where your assets are liquidated. I'm not an attorney, so speak to your tax advisor about each of these bankruptcies if you'd like in-depth information about what they mean. You can usually get a home mortgage in 12 months with a chapter 13 bankruptcy. You can expect to wait at least 2 years for a chapter 7 bankruptcy. Either way, you can expect to produce a trustee letter. It's dis-heartening, but I meet couples and individuals all the time who have either just filed bankruptcy, or they have one being discharged and I'm unable to help until they get a trustee letter, authorizing a home purchase. I hope this helps you in your mortgage endeavor! MTG-GUY

FHA Mortgage s

I'm constantly asked what's the lowest credit score a person can have and still qualify for a new mortgage. The answer is, there's really not one, depending on which kind of mortgage you're interested in, within reason. Logic would tell us that if your credit score is in the 400 range it's probably not going to happen, but it's fair to say, that if your credit score starts with a 5, you have a chance at getting a mortgage. FHA Home Loans are based more on a "big picture" type qualification system for mortgages. They look at the past 2 years credit and employment and go up to 97.75% of the homes selling price, or appraised value, whichever is lower. You can actually get an FHA Home Loan with no credit whatsoever. In this situation, your loan is based on whatever payments you've made on things like utilities, credit cards, cell phone bills, etc. FHA Home Loans are definitely the way to go if you've had credit trouble. It's also possible to get what's called mortgage broker gifts, or concessions for up to 3% of your loans down payment, but you must be able to come up with 3% of your own money. Where you get that money isn't as important as that you acquire it. Additionally, FHA Loans do not count any installment loans, as part of your monthly debt, if it's to be paid off within 10 months. This type of loan may be for a car, boat or other installment that has a specific termination or payoff date. These are not revolving credit, like credit cards. There are some other guidelines that apply for FHA Home Loans, but this gives you a general picture. FHA Home Loans are government loans, backed by HUD (Housing and Urban Development). These mortgages can be NOO (non owner occupied), or investment loans and are usually assumable if the new buyer qualifies. If you still have questions about FHA Home Loans, drop me a line. I'll do my best to answer it for you.

Home Refinance

This is the section that will accomodate questions about refinancing your home for either cash out or rate and term refinancing, to lower your bills.

Mortgage Blog

Get honest answers to your home purchase or refinance and mortgage related questions.

New Home Purchase

If you have a specific question about your mortgage, feel free to use the contact page on EZ Mortgage Quotes. I'll get back with you pretty quick, time permitting.