Small Mortgage after Bankruptcy

[ji9]

We filed for CH13 BK in January 2009.  Converted to CH7 last year.  Discharge date was Sept. 11.   As far as our credit reports go they consider the BK to be over 3 years old, not sure about a mortgage company.  We are looking at buying a house in the $30-50K range.  Our annual income is around $95K.  Our credit scores are in the high 600-low 700 range.  What percentage do you think we might need to put down in order to get a loan for under $50K?   What type of lender might approve this?  Thank you. 

[rckstrscott]

---

@ji9 wrote:

We filed for CH13 BK in January 2009.  Converted to CH7 last year.  Discharge date was Sept. 11.   As far as our credit reports go they consider the BK to be over 3 years old, not sure about a mortgage company.  We are looking at buying a house in the $30-50K range.  Our annual income is around $95K.  Our credit scores are in the high 600-low 700 range.  What percentage do you think we might need to put down in order to get a loan for under $50K?   What type of lender might approve this?  Thank you. 

---

Dischaged in Sept 2011?? You will not be able to get a mortgage from my understanding.

-scott

[Klesko]

You will not be able to qualify for a mortgage until 2 years after BK discharge. 

However for that little amount you might be able to find a hard lender with enough down. I would go to your local credit union first and talk options with them.

[ji9]

I'm under the impression that with a large enough down payment you can get a mortgage at any time after bankruptcy. Trying to figure out exactly what percentage that down payment would need to be.  Hoping someone who has knowledge in this area will answer.  Thank you. 

[rckstrscott]

---

@ji9 wrote:

I'm under the impression that with a large enough down payment you can get a mortgage at any time after bankruptcy. Trying to figure out exactly what percentage that down payment would need to be.  Hoping someone who has knowledge in this area will answer.  Thank you. 

---

From my understanding, there is no amount you could put down to qualify under 2 years from dischage.

Also, mortgage companies don't give such small loans with large downpayments, it doesn't financially make sense to do so. 

I really think your only option is going to be another style loan. I am sure a loan officer will be around this evening to explain

-scott

[01mommy]

---

@ji9 wrote:

We filed for CH13 BK in January 2009.  Converted to CH7 last year.  Discharge date was Sept. 11.   As far as our credit reports go they consider the BK to be over 3 years old, not sure about a mortgage company.  We are looking at buying a house in the $30-50K range.  Our annual income is around $95K.  Our credit scores are in the high 600-low 700 range.  What percentage do you think we might need to put down in order to get a loan for under $50K?   What type of lender might approve this?  Thank you. 

---

The 2 years from discharge is pretty standard...but the greater issue is the amount of mortgage funding you want.  I actually found something in that range and even at 52K, the MB said it would be virtually impossible to find traditional funding because it wasn't enough for banks to make money based on limits for fees.  If you have a considerable down payment (20%+), maybe a hard money or private investor might be able to help you.  Best of luck!  

EDIT:  This is only if your conversion is being reported as a separate filing from the Ch13...underwriting digs deep, but they may have the autonomy to give a green light if it's only the one public record, however, the mortgage amount presents a challenge in any case