Coming off 2 years BK 7 is it possible to use NFCU Homebuyers Choice Loan?

[Anonymous]

Hello,

I will make 2 years post discharge BK Chap 7 this month. Cannot wait to start the homebuying process. 

Mortgage FICO scores are 677 Equifax, 680 Transunion and 682 Experian as of last month. Wife is way higher 800s but they use lower one which is me sadly 😔  

Have officially $55 total monthly debt and wife $800. Total combined income above 120,000. So combined DTI is 9% guessing its super good.

Going by wife super excellent long credit history and score but mine just 2 years of post chap 7 BK would we have any chance in getting a NFCU home loan? 

We dont care about the no downpayment we can pay up to 5% considering average closing costs but we really want to avoid PMI and it seems NFCU would under Homebuyers Choice.

Still wondering if having BK 7 2 years ago and or middle score being 680 they wont even look at me even with wife being with me with her great credit? 

Or FHA with someone else is my only choice? 

[futurehomeowner14]

I applied in 2018 with NFCU for a conventional loan after my Bk7 was 2 years old and was denied for the Bk7. I think the timeframe is 4 years after discharge for a conventional loan and 2 years after discharge for FHA/USDA or VA. I am sure someone will correct me if I am wrong as I am not an expert. 

[Anonymous]

Yes thats the confusing part VA and FHA is okay after 2 years just dont know if NFCU Homebuyers Choice loan is considered a 'conventional loan'?

I guess my next question would have to be who are BK 7 friendly banks after 2 years and wishful thinking avoid PMI? 

I have an NFCU account due to family in military but I am not a veteran though.

Can make downpayment up to 5% give or take.

[VALoanMaster]

I'm pretty sure the NFCU Homebuyers Choice loan is a conventional loan or it's based on conventional guidelines so you would need 4 years post discharge to be eligible.

Also, the loan does have PMI in the form of a higher interest rate for the life of the loan. 

FHA or VA, if you're eligible, will be your best bet.