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Established Member
Posts: 21
Registered: ‎02-11-2008
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3 yrs out of BK and just locked a 4.75 FHA loan!!! Wooooo hooooo!

Just 3 years after filing our Chapter 7 BK, we're all approved, locked in and ready to close on a 4.75%, FHA loan with 3.5% down!  We've learned a lot from this forum and Stephen Schneider and his Life After Bankruptcy, we've done what we were supposed to (no lates, no collections) and by next Friday we will be homeowners again, even though we're retired.  God Bless the USA for I don't think it would have happened anywhere else!

Valued Member
Posts: 104
Registered: ‎06-07-2010
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Re: 3 yrs out of BK and just locked a 4.75 FHA loan!!! Wooooo hooooo!

Let me first say congrats, that is very exciting Smiley Happy

 

I have never experienced BK, but I have a bunch of student loans that charged off in December, 2009 and I'm being told by everyone that it will be years before I'll qualify for a mortgage. It seems crazy that someone out of BK could qualify for a mortgage quicker than me. What exactly did you have to do after your BK to get yourself to a place where you could qualify? I haven't had anything negative at all on my credit report since Feb 2010 and my credit scores are still in the low 500s with very little improvement (got a new job in Feb 2010 after a few months of unemployment, which is what caused the charge offs).


Starting Score: EX 516 TU 565
Current Score: EX 514 TU 573
Goal Score: 620


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Super Contributor
Posts: 6,697
Registered: ‎07-03-2007
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Re: 3 yrs out of BK and just locked a 4.75 FHA loan!!! Wooooo hooooo!

depending on loan amount and fees..... 4.75% is very high

 

* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.

* Lending across the entire 'Great State of Texas' since 2004
Established Member
Posts: 21
Registered: ‎02-11-2008
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Re: 3 yrs out of BK and just locked a 4.75 FHA loan!!! Wooooo hooooo!

We had an excellent credit score before the BK, which was caused by medical problems.  We also had a very long - 40+ years - history that never had one single ding.  Even with the BK our score never dropped below 650.  We never miss any payments (some months we might not eat a lot, but we NEVER miss a payment).  Student loans are different, though.  They are not even allowed to be charged off during a BK.   We feel very fortunate.

Established Member
Posts: 21
Registered: ‎02-11-2008
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Re: 3 yrs out of BK and just locked a 4.75 FHA loan!!! Wooooo hooooo!

We've lived through times when mortgage rates were 12-13%, and after filing the BK, never thought we would be homeowners again.  Rates in our area are running at around 4.73 for people with 20% down and 750+ credit scores, so we feel very, very lucky to get 4.75 with only 3.5% down...and it's for a condo.

Established Member
Posts: 21
Registered: ‎02-11-2008
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Re: 3 yrs out of BK and just locked a 4.75 FHA loan!!! Wooooo hooooo!

why do you think this is high...what would you expect to get, considering the mid score (658), 3 years from C7 BK, 3.5% down?

Contributor
Posts: 77
Registered: ‎05-27-2008
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OhioRe: 3 yrs out of BK and just locked a 4.75 FHA loan!!! Wooooo hooooo!

MBOhio,

You will never qualify FHA with student loan defaults.  You need to make arrangements to do a loan rehab.  It takes 9 months to a year to complete, but it will be the best thing you do for your credit at this point.

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Valued Member
Posts: 43
Registered: ‎02-24-2009
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Re: OhioRe: 3 yrs out of BK and just locked a 4.75 FHA loan!!! Wooooo hooooo!

Grammysue..if FHA runs about the same as USDA loans then 4.7% is too high IMO. I am at 4.25% for my USDA loan.

 

Also question to you mortgage guys..since rates are dropping almost daily is it possible lenders will want to lock you in as soon as possible foregoing the cost to lock in a rate? With a one time float down (which seems to be normal) wouldn't lenders want you to lock in now so your stalled once rates go even lower? Does that make sense? Smiley Happy

Regular Contributor
Posts: 108
Registered: ‎04-06-2008
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Re: OhioRe: 3 yrs out of BK and just locked a 4.75 FHA loan!!! Wooooo hooooo!

Good job on the new loan!!  Which lender did you end up with?

Super Contributor
Posts: 6,697
Registered: ‎07-03-2007
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Re: 3 yrs out of BK and just locked a 4.75 FHA loan!!! Wooooo hooooo!

 


grammysue wrote:

why do you think this is high...what would you expect to get, considering the mid score (658), 3 years from C7 BK, 3.5% down?


 

same rate as someone with 800 scores and no bk

 

again.... it depends on the loan amount and fees.

 

* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.

* Lending across the entire 'Great State of Texas' since 2004
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