Profile picture for FamilyCircle

Is there any loan program or lender out there who will work with us 2 yrs plus after bk & Foreclsre?

We applied for USDA Direct loan but we were told we dont meet their qualifications based on us having a BK OCT 2007, and Foreclosure May 2007. That means our 3 yrs is up in May for foreclosure and October for BK. Their requirements are 3 yrs, but I have seen several people that say 2 yrs is all it takes. But we dont have any money down. We MAY be able to get 3 1/2 % down worse case scenario.

Our credit scores are around 612 to 659...we have not opened any credit lines since we declared bk nor does my husband plan to or want to. He is self employed since 2008 but steady income. WE have 3 yrs perfect rental history since we were foreclosed on. We have steady income now, after loss of job.
We qualify for USDA programs and such because we have a large family of 6.
We make a bit less than  50,000 gross a year from all sources of income. he has a S-corp business. Do we have to wait til May to apply for 3 yr or OCT ?
To apply to USDA oR FHA. Anything else (were moving to usda eligible city)

OH! The most important thing is that we move to new house by August 10th or so....need to get the kids into a good school, cant have them missing a partial year, had to do that 3 times this year and wont do it again.
  • March 31 2010 - Winchester
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Answers (1)

Profile picture for DaveAndersson
Currently FHA requires 2 years out of bankruptcy and 3 years out of foreclosure. Lenders like to see borrowers re-establish a credit profile and use it responsibly, but it is not a necessity. Since you live in CA, you may qualify for the state sponsored CalHFA program which can provide 3% of the required 3.5% down payment for FHA loans. This means you could buy a home witha  0.5% down payment.
  • March 31 2010
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