Questions re: buying a home

tryingtofigureitout · ‎09-12-2021

Hello all!

I'm hoping for some advice. I did a deed in lieu on my first home back in 2011, then filed bankruptcy 2/2012. I've been building my credit and want to buy another home when my bankruptcy is wiped clean in 2022. I'm trying to strategize how best to prepare and find out what I might qualify for. My last home loan isn't even showing up on my credit report.

Will I qualify as a first time home buyer?

What are the best lenders with low down payments? I I have about 15k saved up and my income is about $110/year. I've worked at the same employer for over 20 years.

What should I be doing to put myself in the best position to qualify for loan?

How much will my credit score go up when my bankruptcy falls off? My current credit scores range from 700-717.

Any advice would be greatly appreciated.

thank you!

Credit scores: Experian - 700 Transunion-705 Equifax- 717

VALoanMaster · ‎09-14-2021

@tryingtofigureitout wrote:
Hello all!

I'm hoping for some advice. I did a deed in lieu on my first home back in 2011, then filed bankruptcy 2/2012. I've been building my credit and want to buy another home when my bankruptcy is wiped clean in 2022. I'm trying to strategize how best to prepare and find out what I might qualify for. My last home loan isn't even showing up on my credit report.

Will I qualify as a first time home buyer?

What are the best lenders with low down payments? I I have about 15k saved up and my income is about $110/year. I've worked at the same employer for over 20 years.

What should I be doing to put myself in the best position to qualify for loan?

How much will my credit score go up when my bankruptcy falls off? My current credit scores range from 700-717.

Any advice would be greatly appreciated.

thank you!

Hi @tryingtofigureitout,

The good news is you're eligible right now for pretty much any available mortgage program like FHA, VA, USDA or conventional.

You are technically a first time home buyer now but that doesn't mean anything these days.

You can qualify with anywhere from 3% to 5% down on a conventional loan, 3.5% on FHA and zero down on USDA (only available in rural areas) or VA.

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.

tryingtofigureitout · ‎09-15-2021

Thank you!!! Any idea who I should go to as a good lender. I'm wondering about a mortgage broker and if that would be the best way to find a loan that fits.

Credit scores: Experian - 700 Transunion-705 Equifax- 717

brk1971 · ‎09-17-2021

How much will my credit score go up when my bankruptcy falls off? My current credit scores range from 700-717.

Depending on your entire profile, it is actually possible that you experience a similar score, a small decrease, or an increase... I'm not sure it's specifically predictible from arms length.

IIRC, when the BK falls off your report, you will be rebucketed to a scorecard without BK and while that is certainly (generally) better, some folks see a decrease (because they are no longer being judged as having XYZ data points WITH a BK and are instead having XYZ data points without one). Even if this happens, it is temporary, as your score can go higher without the BK weighing you down. If your report is otherwise clean (and revolving utilization is where it should be) your score will likely take a moderate increase. If you've had lates or other issues of concer in recent times, you may actually see a decrease or it be more stable than you'd wish.