Small mortgage after chapter 7?

[Anonymous]

So I cleared chapter 7 bk about 16 months ago now and I have a down payment ready for the mortgage. I only want to borrow between $50,000-,75,000 for a small fixer upper that I’d live in while working on.
First time buyers
So the questions ...
1.is it easier to get a smaller mortage

2.for my situation above is a shorter term or arm mortage the easier approval? I was thinking was 15 years or 5/1

[CreditInspired]

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@Anonymous wrote:
So I cleared chapter 7 bk about 16 months ago now and I have a down payment ready for the mortgage. I only want to borrow between $50,000-,75,000 for a small fixer upper that I’d live in while working on.
First time buyers
So the questions ...
1.is it easier to get a smaller mortage

2.for my situation above is a shorter term or arm mortage the easier approval? I was thinking was 15 years or 5/1

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It’s not easier to get a smaller mortgage. The same qualifications apply: mortgage scores, DTI, 2 years of employment, and funds for down payment and closing costs.

The loan term you select applies to your individual situation. If you only plan to live in the home for 5 years, then an ARM would be the way to go. But if you feel like you will be living in the home for a long time, a 30-year loan would work. However, if your goal is to live in the home 30 years but to pay it off in 15 years and you can afford the monthly payment, which is much higher, then that is the route you want to take.

Trying to get a mortgage based on which one is easier to get is not really an option. 

[NC_Mtg_Loaner]

Once you are 2 years and 1 day out from discharge date of that Ch. 7 you would be eligible for an FHA loan.  If your purchase price is in the $50-70k range I'd definitely recommend a 10 year or 15 year mortgage loan.   This gives you the ability to generate more equity whne you sell.