Getting a Mortgage with a Bankruptcy?

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I am currently 15 months off my Chapter 7 bankruptcy being discharged and I now have 3 credit cards with zero balance and a Car loan which has been paid on time every month.

I make 55k a year and am wanting to buy a home and stop renting. Do you believe I will be able to get a home mortgage?
If so, what type of interest rates would you suspect I would get or type of payment with taxes based on a 150k home loan? I live in El Paso Texas.

  1. Reply
    April 29, 2011 at 9:11 pm

    Fill out a lending tree app online.. It is no pressure, no obligation and will give you an idea.

  2. Reply
    April 29, 2011 at 9:18 pm

    Provided you qualify otherwise you will, but be prepared to pay a much higher rate than normal. After 3 years following your discharge the rates bump down, and then after 5 years you should not have to pay the penalty rate provided of course you’ve kept a clean credit record.

  3. Reply
    April 29, 2011 at 9:41 pm

    I’m sure you’ll be able to get a mortgage, but with a very high interest rate. maybe 7.63 % because you are still at risk. Just be sure to deal with a bank rather than these prime-mortgage dealer. They will take you for all the money you have and will not be willing to work with you should an emergency arise.

  4. Reply
    April 29, 2011 at 9:47 pm

    Since you have already re-established your credit, I don’t see why you could not get a mortgage.

    I agree with the other answer, try lending I used them while just looking around and had 3-offers for a loan in less than 1-hour. I was 3-years out of my chapter 7 and had re-established my credit also.

  5. Reply
    April 29, 2011 at 10:06 pm

    Most reputable lenders will want to see your bankruptcy discharged for two years with reestablished credit. In my area, they won’t come near you unless two years have elapsed. You will pay a higher interest rate this fresh off the bankruptcy. I really cannot give you a ball park b/c I don’t live in Texas, but I’ve seen new bankruptcies pay about 4% higher interest than everyone else.

  6. Reply
    Gillian G
    April 29, 2011 at 10:43 pm

    When you want to rebuild your credit after bankruptcy and get a home loan the sooner you start the better. You’ve been doing the right thing so far and your income is OK.

    The best advice I can give is to start shopping around and don’t be put off by refusals. If you get an offer, even if the interest is high, take it and pay it off regularly. After a couple of years of good credit you can refinance at a lower rate.

    There’s a website here with advice on this topic which I hope will help.

    Good luck!

  7. Reply
    April 29, 2011 at 11:43 pm

    Absolutely! You didn’t have to wait for the Ch 7 to be removed. Trust me, I purchased a home less than 2 years after filing for bankruptcy.

    I would start with pulling your credit from all three agencies, make sure the accounts listed are yours. Once you have verified everything, get your score. Anything over 620 is eligible for a mortage. The higher the score, the lower the mortage rate will be.

    If what you have indicated is true, then your score is probably higher than what you think.

    $ 150k = $ 1200 with PITI (this is just a guestimate)

    Good luck!

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