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HELP!! Getting a home loan four years after bankruptcy discharge and recent selling of other home?

Ok so I'll try to sum this up as much as possible. My husband and I filed for bankruptcy in 2009 and were discharged in early 2010. We had already bought a home before we filed and kept our home and continued to pay on it, little did our expensive lawyer tell us, we had to reaffirm our mortgage, but we never did. So it was never reporting on our credit. I applied for a credit card solely to build credit about a year ago, but my husband saw no need in it. Fast forward a year later and now we sold our home in California and moved to idaho falls to buy a new home. He had a credit score show up of 643 on freecredit report.com (per advise of broker at bankofamerica) and I have a 680 so we thought we would be fine to get another mortgage. Now Bank of America is denying us for a loan because their sub company landsafe states that my husband does not have a credit score? We both work remotely but I am part time about 2 hours a day and he is the sole income and has worked for his company for 6+ years. We are putting 20% down and hopping to have a home built for 167,900 we have our equity ready to re invest but we are so discouraged and don't know where to go from here. Will any lenders use a non traditional score? We haven't missed any payments or faulted on anything since the bankruptcy. What are our options!!!?
  • November 11 2013 - Idaho Falls
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Answers (5)

Not having a credit score is not a reason to be denied a FHA loan.  Having a low credit score is a different story.  Every lender imposes their own overlays on to that guideline, but there are lenders doing this.
  • December 11 2013
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Hi Devin, have you had a licensed Idaho lender re-review your application?  There are several of us that have programs for non traditional scores. Check out the "find a pro" section above and reach out to one or two Idaho lenders with good reviews and I think you might get very different information than you have previously received. Thanks and good luck!
  • December 11 2013
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In the event a borrower does not have sufficient credit on their credit report there are lenders that will allow substitute forms. Some of these substitute forms are known as non-traditional credit which is judged by rental housing payments, utility company references (gas, electricity, water, cable, etc.), school tuition, automobile leases, insurance premiums, retail store credit cards, and a documented 12 month history of savings from a bank. These are all ways in which a lender will review your credit without actually having credit, but not all lenders will accept this.It is also important to keep in mind that lenders look at other factors as well including income, expenses, assets, liabilities, debt, employment, as well as down payment and credit score. So all of these have to be strong as well for you to be able to get a loan. There is still a chance you can get a loan if you are willing to put half down. I recommend you speak to a lender like myself that can help you out with this type of loan that fits your situation. Well if you have any other questions or need a loan, please contact me through the information on my profile page. I hope this helps and good luck! 
  • November 12 2013
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Please contact me through my profile. We have a program at our bank for that scenario.
  • November 12 2013
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I am closing a loan for a retired couple with a similar scenario right now. Happy to review your scenario.
  • November 11 2013
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