Home Loan in CA after bankruptcy

[805 ST]

My wife and I have never owned a home before. I filed for Bankruptcy before we were married. We both have around a 630/640 credit score. She doesn't have much credit history. Do you think it is feasible to look at purchasing a house or condo. I know prices right now are outragous. How much of a loan could we qualify for? We have around $30,000 for a down payment and are looking at a condo for around $350,000. Do we have any hope?

[condor]

Yes, you can get a mortgage. Without knowing more about your situation I can't say for certain what product would serve you best. Contact me anytime and we'll get you into a house.

[bct]

there are banks especially set up for people with bad credit history to get mortgages

[Zanzi]

If your bankruptcy is one year old (or older) you won’t have a problem. Granted, you will probably have to go with a lender who will view it as “sub-prime” – in other words s/he will charge you a higher interest rate than other folks would pay - but once the bankruptcy has gotten older you can refinance and get a better rate. A good first place to start is eloan.com. They will take all your information and get you squared away once they find a lender that will write your mortgage for you.

[Mrs Wolfie]

As someone who teaches students on mortgage lending, I can guarantee you are going to have a tougher road then most. You will most likely not qualify for a traditional product- we always want the bk to be paid off. Yes, you might qualify for subprime lending but you are going to face higher interest rates and most definately, you are going to have to have compensating factors to off set your risk- lots of liquid assets, money in the bank, etc. A year out from a bk is not that long. When I see 8 or 9 years out, I know I have at least a chance with an underwriter.

[Avian]

It sounds like you have the liquid assets to get a mortage. It won't be a great one, but as long as you can deal with the high interest rate, you should be okay.

[Raquelita]

I'm sure you could get a mortgage, but I am not certain how good of an interest rate you would get. And with a mortgage over $300,000 your payments will be very high each month so you'd need to make a good income to afford it.

[wey13]

The biggest determining factor will be the length of time since the bankruptcy. There are options regardless but the longer out it is then the better off you will be as far as interest rates are concerned of course.

[derdo]

Hi, I certainly agree with you. Your advice is really very helpful for us.
Thanks a lot!

[spencer24]

Even though the thread is rather old, I'll reply. Getting mortgage loan without at least 20% down, with longer than 25 years amortization or at the real estate market top, can potentially cost you lots of money and there is a possibility to lose the house, if you can't manage the payments.