Any Fannie Mae direct lender should be able to provide this financing to you. Any lender or bank that says "No" has internal overlays in place preventing them from doing the loan. So the short answer is, find a direct lender and the rest of the process should be a standard process.
Be sure to check with locally housing agencies to see if they offer any special low down payment programs. Here in Colorado, we have the Colorado Housing and Finance Authority (CHFA) that offer a 3% down conventional loan with no mortgage insurance. I know many states and cities have similar products available.
If you are going to be using the CHFA Advantage program (which is a GREAT program), be sure to also get a Mortgage Credit Certificate (MCC) at the same time. It will enable you to get a dollar - for -dollar tax credit on 20% of your annual interest payments for the life you own that home.As for your other questions, the funds from a family member are acceptable. In most cases you can have a seller pay your closing costs, and finally if your portion of the funds for down payment are already in your account or are obtained during the process from a legitimate source (pay check, sale of an item, etc.) then it wouldn't need to be all in there right now. Gifts can be documented at any time.Finally, the minimum credit score on the CHFA Advantage product is 680, so you probably could apply now without having to wait for your score to increase based on your 700's estimate.
If your bankruptcy was over 2 years ago and you have a 620 credit score, you should qualify for an FHA loan. Standard FHA guidelines allow for credit scores as low as 580, so your 620 would be fine.The reason you may get a "no" from banks is only a handful of companies are able to provide financing in the lower FICO score ranges. My company is one of those if you would like help in getting pre-approved.
The term you will here is "continuity of obligation", meaning they will need to verify payment history and loan terms. Also, you will want to make sure the loan in place was actually recorded on a county level. If the seller never filed the lien it would be harder to get it refinanced. Any underwriter will request a copy of the NOTE (terms of the mortgage) to verify the terms as well.Typically in a scenario like this, a lender will get an appraisal for value. That being said, if you are refinancing in first 6 months, they may use the original purchase price OR the appraised value - whichever is less. They do this to avoid people getting a "deal" from a seller and then immediately refinancing into a new loan at an LTV that would not require mortgage insurance.
I have seen quite a few responses that state the minimum down is 5% on a conventional loan. Standard guidelines for Fannie Mae calls for 3% down on a conventional loan. If a bank or lender is not offering a 3% down loan, it is usually an indication that they have "overlays" resulting in a higher down payment requirement.Also, be sure to check with local non profit organizations to see what programs they have available. Here in Colorado, we have a 3% down conventional loan with NO mortgage insurance. It is an unbeatable program. Finally, if you are looking at condos and wish to use an FHA mortgage, you will need to check if the building is "FHA approved". Many of the condo projects have lost their approval, and due to costs have not re-applied. You can use the following link to check project names for approval purposes.https://entp.hud.gov/idapp/html/condlook.cfm
FHA, VA, Fannie Mae, or Freddie Mac all will let you borrower against your 401k without the debt being counted in your DTI. Anything different is an "Investor" overlay. If the lender you are speaking of is a Bank or Credit Union, they may have their own rules on top of the standard agency guidelines OR they may be using a "portfolio" product (meaning they don't underwrite to any of the agency guidelines).
While there are options for 3% down loans, you will find far more aggressive pricing on both the interest rate and mortgage insurance fronts if you put at least 5% down. Other than that, everyone is exactly on target with the single premium option. One thing I would look at further is going with a Lender Paid Mortgage Insurance program (LPMI). You can either go with a higher rate or pay a "discount" fee instead of a mortgage insurance premium. They will cost exactly the same, however, discount or origination fees are tax deductible as "interest" as opposed to mortgage insurance wich wouldn't be at your income.
Hello - I would recommend looking at possibly doing a reverse mortgage. You could possible do a reverse mortgage to upgrade the home they are currrently in, or a reverse mortgage to purchase the new home. The past bankruptcy will not matter much in this scenario since a reverse mortgage is an FHA loan. The benefit of a reverse mortgage would be that other than using equity from the home or the down payment, there would be no future payments on the home. Your parents would essentially have no mortgage. Something worth considering.
If you are going to go with a down payment assistance program, be sure to look into getting a Mortgage Credit Certificate (MCC) as well. CHFA (as mentioned in earlier posts) is a great resource for down payment assistance. In addition to providing the down payment assistance, they also offer the MCC which would allow you to get a dollar-for-dollar tax credit on 20% of your annual mortgage interest. That can be thousands in savings per year!