There is really no set "time frame" to when you should start shopping for a mortgage, but I will tell you this from experience and numerous loans I've written.
1. Get above a 580 FICO
2. Get your DTI below 45%
3. Wait 1yr after your discharge date (my bank won't even look at you without it being discharged for a year and having 1 upstanding revolving credit line sense the BK)
Until you can substantiate these, it's really not in your best interest to get your hopes up as you won't like the outcome.
As far as Subprime loans, there is nothing wrong with them. They are a great tool to help those out that need a helping hand buying a home. I highly recommend using a "power house" bank for the referal (Chase, Wells, BofA) that way you make sure you aren't being fed to sharks by shopping the phone book. My bank has numerous partnerships with contracted sub prime lenders all around the world (i had around 1,200 reputible on my books about 6 months ago) that are constantly monitored by the recommending banks. As far as the loan package goes, it all has to do with your current situation and what you can afford, I know for a fact that there are sub prime programs for 100% financing (80/20) 30 yr amortized with no arms/int only options if that is the route you want to go.
Message Edited by Acidsniper on
05-11-2007 01:41 PM