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Mortgage after BK

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Mortgage after BK

Hi,

 

Filed for Ch. 7 and was discharged in December 2016.  Approaching the 2 year mark, and my lease on my apartment is up in March.  Considering possibly trying to qualify for a mortgage, but don't know what my chances of approval are.

 

I have several cards after BK, am an AU on a few other cards.  There have been no late payments or anything like that since the BK.  Scores were around 500 two years ago, now all scores are in the 700 range.  I have a balance i've been carrying on one card just because of a no interest offer I wanted to use for a purchase, but all payments have been made and the card will be paid down to zero by december.

 

I have an auto loan through penfed which I have paid an extra $150 a month on for an entire year, and have a card and CLOC with navyfed.  Not sure if i would be able to qualify through either of these CUs or if a different bank is a better bet being only 2 years post discharge.  

 

I do have a couple of new accounts on my report since they give you a new school loan each semeseter.  Other than the student loans which are in differement while i finish my last month of school, and the auto loan which is about $10k left on a $15k loan, I have no other debt.

 

Mostly looking for advice on which lenders may work with someone 2 years post BK and any other steps i should take to bolster my credit profile before applying.

 

Thanks for any help, this board has been great and couldn't have gotten to where I am today without the posts and advice from people on here!


BK 7 Scores (12/2016): EQ-528. TU-486. EX-530.
Current Scores (11/2017): EQ-671. TU-665. EX-669.
Goal for 2017: 650's. - made it!! next stop 680's. www.cartkingz.com
Message 1 of 7
6 REPLIES 6
Valued Contributor

Re: Mortgage after BK

You can go FHA 2 years after chapter 7.

Message 2 of 7
Contributor

Re: Mortgage after BK

Check out NFCU as they are BK friendly and go FHA in December.


In the garden until 12/10/2019
Goal is 720+
11/15/17 EQ 591 TU 469 EX 545 FICO 8
12/25/18 EQ 676 TU 669 EX 659 FICO 8
EQ 33 INQ l TU 29 INQ l EX 48 INQ l
Message 3 of 7
Member

Re: Mortgage after BK

NACA may be another option for you, if they are available in your city.  With them you only have to be 2 years out of Ch. 7 as well.

Starting Score: 450
Current Score: 654
Goal Score: 700


Take the myFICO Fitness Challenge
Message 4 of 7
Established Contributor

Re: Mortgage after BK

Great job recovering after you BKCH7! Those scores look awesome. You appear to be a perfect candidate for an FHA loan or if the HUD loan limits don't work for you, you can go NonQM but the rates, fees and down payment will be higher. If the FHA/HUD loan limits work for you in your area, then that's the way to go.  You can always refi into a Conventional down the road. Depending on your available funds, you have several options including using a DPA Program. As far as using an FHA loan, hopefully you have a good rental history, you may be asked to provide a 12 month history in the event the AUS (automated underwriting system) has a brain f*@% and won't issue an Approve/Eligible so the lender will have to do downgrade to Manually underwrite. But you should be okay as long as run your credit in January giving you a full 2 years period AFTER your discharge.

 

Best wishes to you!

Mortgage Banker - Since 1988 offering FHA, VA, USDA, Conventional, Jumbo and Portfolio Loan Products. Licensed in AL, AZ, CA, FL, GA, IL, IA, IN, KY, LA, MI, MO, NC, NE, NV, NJ, OH, OK, OR, PA, SC, TN, TX, VA and WI.
Message 5 of 7
New Member

Re: Mortgage after BK

I applied for an FHA loan at 2 years and 2 months post bankruptcy, discharged 12/2015. Best decision I ever made. Put down 3.5% and seller paid my closing costs. I had an excellent payment history and low usage. Go for it. Your LO will look at your report and let you know if you need to do anything further.
Message 6 of 7
New Member

Re: Mortgage after BK

Try for an FHA loan with Planet Home Lending. They refinanced my loan 2 months after a BK13 discharge. You will have to wait until you pass the 2 year mark from the BK7 discharge date before you apply. Based on the scores you list, you should qualify without problems.

 

DM me if you want the contact info for the originator I used. He was great to deal with, understood my situation, and was very responsive.

Message 7 of 7
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