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Marginal Credit Home Purchase Mortgages

Hello everyone.  I was curious if there were mortgage loan programs for folks with marginal credit, i.e. had a bankruptcy discharged a few years ago, but make a significant amount of money.  I have verifiable income of 160-180K per year.  Hope to hear back from you.

  • April 22 2008 - US
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Answers (21)

Profile picture for ELender

If you have re-established your credit history there are still programs out there.  You better have a pretty good explanation typed up to explain why the bankruptcy got filed.  They are getting very tough on financial mismanagement so hopefully that was not your issue.  Any idea how much you are looking to spend?

  • April 22 2008
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325K Max

  • April 22 2008
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Profile picture for ELender

How old is the discharge and what are you wanting to put down?

  • April 22 2008
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It was discharged 3 years ago and 3 to 5% down, probably 5%

  • April 22 2008
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Profile picture for ELender

You'll probably want to try a FHA loan....you'll need to know what the FHA limit is for the county you are interested in...

  • April 22 2008
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You could likely qualify for an FHA loan. They won't accept any lates after the BK is discharged, however. If you do have lates reporting on your credit, but the accounts were included in the BK, then a copy of the discharge papers would suffice in proving you weren't late. You will also need current credit to qualify. Assuming a manual underwrite (are your scores below 580?) you'll need most likely 3-4 tradelines with a 12 month history showing no 30 day+ lates.

 

Cheers!

  • April 23 2008
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You can do an EAIII with us or FHA. The greats are very competitive.

  • April 23 2008
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Vincent---Saw one of your quotes in my neck of the woods.  Mind sharing what kind of program CW has for 100% at 5.5% fixed?    Knowing that product would be useful around here, our rep doesn't seem to know about it.

 

Thanks

 

QuoteID--ZQ-CQSPRRW

  • April 23 2008
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it is the CWBS loan they will honor that rate as long as you can close by last week!
  • April 23 2008
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I love a good competitive 'great!' :)

 

Guys, don't gang up on poor Vincent.

 

To answer Morally bankrupt- FHA is the only way to go with that small of a down payment- That I know of anyway. But I don't know everything, sadly.

  • April 23 2008
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Hello MB,

Are there more credit issues since the BK?

CR

  • April 23 2008
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MB,

 

I can offer a little helpful guidance, but I don't want you to take this out of context or consider it chastising.  You declared Bankruptcy a few years ago effectively relieving yourself from your old debts and pressure; you have marginal credit ( I am in hopes you simply mean a lower score from the Old BK and not late payments since the BK); you make $15,000/month and you have 3 -5% down, probably 5%.  If that is the case, I would not buy a home in this condition.  You have not "saved" enough money for emergencies. I don't know the situtation as to your BK, but I know it is mainly when people can't handle debt. Why would you want to be that leveraged right off the bat?  I would suggest that you wait until at least 10%, get a good mortgage LO to guide you through what you need to do to get a CONV rate (FIXED) and settle for nothing less. Patience will save you 10's of thousands to 100's of thousands in interest.  Good luck.

  • April 24 2008
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"Guys, don't gang up on poor Vincent. "

 

 

With all due respect Jenn, Salem and i and Vincent have been on these forums for just under a year and kinda like to mess around w/ each other.  Not a big deal...

  • April 24 2008
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Colorado- I was kidding. I actually like the banter.

  • April 24 2008
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Oh, gotcha.  Actually if in fact ole CW does have some product like that i would love for him to share what it is with me so we can broker it to them......

  • April 24 2008
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Nic look at that.....Larry is still lurking.

 

Larry could you confirm or deny that you and David Young are the same person.  I have read a few of his posts that reminded me of some of your more creative pros!

  • April 24 2008
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Ya Larry's still around.....Doubt it's David though.  Larry never had a sweet glamour shot like that.

  • April 24 2008
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Maybe Rural Nic?  Rates were pretty close to that....

  • April 24 2008
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As long as its been at least two years since the bk and you've reestablished with good tradelines since the bk then you should be okay getting a loan.  I assume you didn't take down a mortgage with the bk because then it could be up to four years for most banks to want you to have been discharged.  It also depends on what your credit scores are now.  If you have no lates since the bk then you can go fha.  If your score is high enough then you are a candidate for an alt-a program.  If your bk was due to medical issues then it is usually easier to get exceptions too.

  • April 25 2008
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Might be Eric,  Would have my doubts though.  It was a quote for a purchase in Littleton, which is a suburb of Denver......

  • April 25 2008
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Thank You,

Lumpy!

Cr

  • April 30 2008
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