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Bankruptcy:Mortgage, Can anyone tell me what this is going to affect as far as my wife and I purchasing our first home? It's been two long years since, and now we both finally have decent steady jobs with annual raises and we want our own home in California. Although we had a bankruptcy, we are good standing renters and no bad credit since. We are thinking FHA loan for first time buyers. Will the bankruptcy affect the interest rate like it does for a car purchase? Anything else you might be able to assist me in this matter is greatly appriciated.
fha has a no score requirement....but the have credit worthiness requirements.
you can't have a bankruptcy in the last 2yrs..and they will look at the last 12months to make sure you are rebuilding your credit.
you CAN'T have ANY credit lates in the last 12months.....
FHA isnt a 1st time home buyer's program....you can use it to purchase or refinance a home.
Interest rates are determined by the lender...and have nothing to do with the credit score. They however may have something to do with your credit worthiness as it costs money to do a 'manual underwrite'.
Quote:
Originally Posted by Mr Bungle
Bankruptcy:Mortgage, Can anyone tell me what this is going to affect as far as my wife and I purchasing our first home? It's been two long years since, and now we both finally have decent steady jobs with annual raises and we want our own home in California. Although we had a bankruptcy, we are good standing renters and no bad credit since. We are thinking FHA loan for first time buyers. Will the bankruptcy affect the interest rate like it does for a car purchase? Anything else you might be able to assist me in this matter is greatly appriciated.
Bankruptcy:Mortgage, Can anyone tell me what this is going to affect as far as my wife and I purchasing our first home? It's been two long years since, and now we both finally have decent steady jobs with annual raises and we want our own home in California. Although we had a bankruptcy, we are good standing renters and no bad credit since. We are thinking FHA loan for first time buyers. Will the bankruptcy affect the interest rate like it does for a car purchase? Anything else you might be able to assist me in this matter is greatly appriciated.
The rate will be the same for the FHA whether you filed for BK or not. So, no it is not like buying a car where they jack the rate up to 20%.
You would be looking at somewhere around 6.25%-6.5% based on today's pricing.
Thankx! I guess my original message got the wording all tossed about.
"It's been two long years since our bankruptcy so we're just about in the clear come this Feb." Now, what about my defaulted federal student loan of about 25-30k? it's somewhat been taken care of since the begining. (some papers that I signed saying that I'll pay what-ever I can, whenever I can for the next 30 years, and after that it will be written off, oh, and if I can't afford to send any don't send anything) seemed like a pretty good deal to me so I never really sent any money. What they said in the beginning (1995) was that my intersest would eat me alive and so to handle it with this particular paperwork. (I've already knocked on wood) they've never bugged me to send any money and I've updated them with my new income and everything, and I even got a hefty $5000 tax return (earned income credit) in 2006.
Will this affect us getting a loan? how about a HUD loan?
Thankx again for your knowledge, I appericiate you people. USA ROCKS!!
It very well could knock you out of qualifying. You need to go see a lender to see what shows up on the credit report with respect to this student loan. One of the questions we have to ask every applicant for the application is "are you delinquent or in default on any Federal Debt." Since you have an "agreement" maybe you are not in default??
Cool! thankx. We did give one agent permission to do a credit check so we'll find out.
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Anything else you might be able to assist me in this matter is greatly appriciated.
