Anyone get a mortgage right after the 2yr BK mark?

[ugghh]

Looking to see if anyone has recently been approved for a mortgage right after their 2 year discharge date?

 

I always see people post up and ask when they would be eligible but I hardly see anyone who got it right after they were eligible.

 

Just curious to see how their experience was and if the BK still played a role.

[lovethedeal]

My discharge date was March 5, 2010. I just closed on my home April 23rd. FHA 3.5DP and an interest rate of 4.125%. I should have down a tad better on the interest rate, but I was just glad to get it done. Sellers paid 3% in closing costs.

[ugghh]

WOW... Good deal. Thank you for posting!!!

 

Was the BK a non issue the whole time or was there any hoops they made you jump through because of the BK?

[lovethedeal]

WOW... Good deal. Thank you for posting!!!

 

Was the BK a non issue the whole time or was there any hoops they made you jump through because of the BK?

 

I had to have the entire BK packet showing all the creditors. My husband and I divorced last June and no way would he have given that to me, so luckily, my bk attorney had it all saved and emailed to me. I gave it to the lender who forwarded it to the UW.

 

I also had to show that I wasn't on the mtg for our old house together (which is in foreclosure). I had to call the title company to get a copy of the note for that and a rental property also in the same boat.

 

There were no other issues at all. I have kept sparkling clean credit for the last 2 years. No lates. I have 2 CC and a car loan at 9% that I have been paying extra on.

 

My mortgage is now less than the rent I was paying.

[Rebuilding2010]

My discharge date was March 5, 2010. I just closed on my home April 23rd. FHA 3.5DP and an interest rate of 4.125%. I should have down a tad better on the interest rate, but I was just glad to get it done. Sellers paid 3% in closing costs.

How do you guys get sellers to pay closing costs? It seems like in my neighborhood it's a steal just to buy a house at listing price before a bidding war starts going on.

[ugghh]

 

I had to have the entire BK packet showing all the creditors. My husband and I divorced last June and no way would he have given that to me, so luckily, my bk attorney had it all saved and emailed to me. I gave it to the lender who forwarded it to the UW.

 

I also had to show that I wasn't on the mtg for our old house together (which is in foreclosure). I had to call the title company to get a copy of the note for that and a rental property also in the same boat.

 

There were no other issues at all. I have kept sparkling clean credit for the last 2 years. No lates. I have 2 CC and a car loan at 9% that I have been paying extra on.

 

My mortgage is now less than the rent I was paying.

 

Thank you for the information!!! AND congrats on your new home!

[Chris in OK]

My two year mark is July 7. I'll be applying at that time but have been assured by the loan originator at the local bank that I'm a shoe in with my 670 middle score and squeaky clean credit for the least two years. I plan on making a thread about this journey soon.

 

Sent from my Desire HD using Tapatalk 2

[ugghh]

My two year mark is July 7. I'll be applying at that time but have been assured by the loan originator at the local bank that I'm a shoe in with my 670 middle score and squeaky clean credit for the least two years. I plan on making a thread about this journey soon.

 

Sent from my Desire HD using Tapatalk 2

 

Cool. I look forward to following it. Is it a big bank/CU or is it going to be a local one?

[twizzle]

Looking to see if anyone has recently been approved for a mortgage right after their 2 year discharge date?

 

I always see people post up and ask when they would be eligible but I hardly see anyone who got it right after they were eligible.

 

Just curious to see how their experience was and if the BK still played a role.

 

We did. Last yr. We were actually preapproved FHA 2 mos before our 2 yr, but we had a contingency on it we couldn't close until our 2 yr anniv date. We used a broker we've used before; she's also a friend of my parents. But we actually couldn't find a house we liked and ended up closing about 3.5 mo after our anniv.

 

Our scores were over 700, we had no debt, we had credit lines reestablished aging 2 yrs, and our reports were clean since discharge. We got a sellers' assist and a down pymt grant. The loan itself was a piece of cake (just had to supply a LOE, our discharge letter, and packet). The BK was never really an issue other than that.

Edited May 27, 2012 by twizzle

[DallasLoanGuy]

Many people have not re-established credit or didn't have any accounts survive BK..... so they have a difficult time at the two yr mark.

 

I have had a lot of people apply right at the 2yr mark. Many have closed.

 

Things that kill the deal for the rest:

1. have not re-established new credit

2. bad credit(no matter how small) post bk

[ugghh]

We did. Last yr. We were actually preapproved FHA 2 mos before our 2 yr, but we had a contingency on it we couldn't close until our 2 yr anniv date. We used a broker we've used before; she's also a friend of my parents. But we actually couldn't find a house we liked and ended up closing about 3.5 mo after our anniv.

 

Our scores were over 700, we had no debt, we had credit lines reestablished aging 2 yrs, and our reports were clean since discharge. We got a sellers' assist and a down pymt grant. The loan itself was a piece of cake (just had to supply a LOE, our discharge letter, and packet). The BK was never really an issue other than that.

 

Thanks for posting your story twizzle! I appreciate the real world results!!!

[ugghh]

Many people have not re-established credit or didn't have any accounts survive BK..... so they have a difficult time at the two yr mark.

 

I have had a lot of people apply right at the 2yr mark. Many have closed.

 

Things that kill the deal for the rest:

1. have not re-established new credit

2. bad credit(no matter how small) post bk

 

This is good to know also! I think a lot of people who file BK say they never want to touch credit cards again. Unfortunately for most of us it is a necessary evil if we want to get stuff like mortgages & cars.

[floorman]

My discharge date was March 5, 2010. I just closed on my home April 23rd. FHA 3.5DP and an interest rate of 4.125%. I should have down a tad better on the interest rate, but I was just glad to get it done. Sellers paid 3% in closing costs.

How do you guys get sellers to pay closing costs? It seems like in my neighborhood it's a steal just to buy a house at listing price before a bidding war starts going on.

 

You make an offer that's over the listing price, ask for the closing costs, and then hope it appraises for what you offered.

[saladdin69]

My discharge date was March 5, 2010. I just closed on my home April 23rd. FHA 3.5DP and an interest rate of 4.125%. I should have down a tad better on the interest rate, but I was just glad to get it done. Sellers paid 3% in closing costs.

How do you guys get sellers to pay closing costs? It seems like in my neighborhood it's a steal just to buy a house at listing price before a bidding war starts going on.

 

You make an offer that's over the listing price, ask for the closing costs, and then hope it appraises for what you offered.

 

 

I know you are just answering the OP but I have never understood how this is "seller paying closing costs". You are rolling those into the loan. The seller isn't paying anything. The buyer is financing the closing costs for 30 years at whatever rate the loan is. I wished this was not allowed. I don;t see how someone is credit worthy or financially stable if they can't afford to pay out of pocket the closing costs. That's why I paid all closing and VA funding fee out of pocket. But I guess that's just a personal choice. No doubt someone could run some numbers and show it otherwise.

 

But in the very least, it should not be referred to as "seller paying closing". The vernacular should be more of "rolling it into the loan".

[lovethedeal]

My discharge date was March 5, 2010. I just closed on my home April 23rd. FHA 3.5DP and an interest rate of 4.125%. I should have down a tad better on the interest rate, but I was just glad to get it done. Sellers paid 3% in closing costs.

How do you guys get sellers to pay closing costs? It seems like in my neighborhood it's a steal just to buy a house at listing price before a bidding war starts going on.

 

You make an offer that's over the listing price, ask for the closing costs, and then hope it appraises for what you offered.

 

 

I know you are just answering the OP but I have never understood how this is "seller paying closing costs". You are rolling those into the loan. The seller isn't paying anything. The buyer is financing the closing costs for 30 years at whatever rate the loan is. I wished this was not allowed. I don;t see how someone is credit worthy or financially stable if they can't afford to pay out of pocket the closing costs. That's why I paid all closing and VA funding fee out of pocket. But I guess that's just a personal choice. No doubt someone could run some numbers and show it otherwise.

 

But in the very least, it should not be referred to as "seller paying closing". The vernacular should be more of "rolling it into the loan".

 

This is not true. The asking price on my house was 140k. I offered 130k and the seller to pay 3% towards my closing costs. As far as I am concerned, the seller paid for most of my closing costs.

[ugghh]

I think it is all a matter of location and supply/demand.

[twizzle]

I know you are just answering the OP but I have never understood how this is "seller paying closing costs". You are rolling those into the loan. The seller isn't paying anything. The buyer is financing the closing costs for 30 years at whatever rate the loan is. I wished this was not allowed. I don;t see how someone is credit worthy or financially stable if they can't afford to pay out of pocket the closing costs. That's why I paid all closing and VA funding fee out of pocket. But I guess that's just a personal choice. No doubt someone could run some numbers and show it otherwise.

 

But in the very least, it should not be referred to as "seller paying closing". The vernacular should be more of "rolling it into the loan".

 

We're getting OT, but I have to disagree w some of this.

 

Not everyone offers over asking, and then gets back credits. (And though I've never done it, paid more just to get back credits, I can also see why some would.) Sometimes there's very good reasons for asking for credits that have nothing to do w having bad credit or being financially unstable.

 

In our case, when we bought this house we asked for credits to keep down our outlay of cash. But then we bought a foreclosure way under value, got a disgustingly low interest rate, and had a bunch of renovation/repair work we wanted to do on the house. Getting those credits allowed us to keep our savings for reno surprises and to get some great deals.

 

When we sold our house, our septic/leach had failed (on a 3 yr old house. Wah). Our buyers got 5k back at closing to pay for the repair so we didn't have to do so ourselves. Thank gawd for that one. The closing wasn't delayed, we didn't have our lawn dug up while we were still there, and on and on. And I hate to break it to you, but we most certainly did pay for those credits on paper. For example, those realtor fees we paid were based off the total sales price. That 5k came off our side, affecting our net. So, yeah, those credits cost us.

 

Should someone without adequate cash reserves be allowed to purchase a home? Nope. I agree. Still. I'm sorry you wish this wasn't allowed, but I'm very grateful it was.

Edited June 6, 2012 by twizzle

[IvyMgmt]

Just because you do not have adequate "reserves" does not mean you should not be a home owner.. If there are other concessions to help with this why not allow the person to have them.. seems a bit judgmential to me..

[twizzle]

Just because you do not have adequate "reserves" does not mean you should not be a home owner.. If there are other concessions to help with this why not allow the person to have them.. seems a bit judgmential to me..

 

You need adequate reserves to purchase a house. What that is is determined by who is lending and what they're lending. Personally, I would never advise anyone to buy without a large enough cash cushion to cover the unexpected. You can call it judgmental. I call it my opinion that someone looking to purchase needs to be practical and realistic. You're taking a huge gamble if you don't have one.

 

Surprises happen, esp in life and in a home. Jobs are lost, people get sick, nature happens, and things break. We only owned this home 6 mos and we were in for 7k for a new water heater and oil burner and about another 1k to repair damaged pipes. None covered by ins and it had nothing to do w anything that could have been detected in our home inspec.

 

Thank goodness we had adequate cash reserves, above and beyond whatever credits we got back, because bad things happen and there's no landlord to pay for it. Sorry, but we'll just have to agree to disagree.

Edited June 8, 2012 by twizzle

[Chris in OK]

I forgot to add, we are under contract already. Contingent upon loan, obviously. It's what is called a "lease purchase" agreement. The seller is asking $89900, and will pay up to $4500 closing costs. We offered at full list because the house is completely new inside (full remodel) with a brand new central heat/air unit and it's on ~3 acres. I'll make my thread soon.