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Ok, so I know it is possible to get a home loan after bankruptcy but I know it is hard. I currently have a middle credit score of 650. I’m not going to go in great detail over why I had to file bankruptcy. Hard times, husband lost his job, husband got sick, husband is why we had to file for Bankruptcy. Anyways I am wanting to apply for a home loan by myself. My husband is still sick and cannot work. I know lenders don’t have a heart or really give a crap about that but thats the situation (sorry just frustraited with life) Anyways, I don’t want to apply to a million places just to have them say no, I know that hurts my credit and I’m trying to repair that, I’ve already applied at a place and got denied. I just want an honest lender that will possibly lend to me. I know thats hard to find, but how do I find them. FHA will not lend to me untill a year from now, I am sick of renting and basically throwing money away. My rent payment is more than a house payment would be, I’m not even looking for a huge loan, around 50,000 lots a nice places to choose from for that prices where I live could have gotten a nice house for $ 25,000 but couldn’t get the loan for it, someone else scooped it up quickly. I have $ 5000 for a down payment. How do I find a loan?
Yea you say most, I’m not looking for most, I am looking for the ones who will. Their are a lot of poor people out in the world that can only afford a $ 50,000 house, as well as lots of people that buy $ 50,000 houses with a loan. So most is not all. Do not answer my question if your just going to tell me I can’t get a loan. Their are places, I want to know what they are so I can research them!
When I say honest lender, I mean someone who will work with me and tell me the truth. I have been told they exist. I don’t want an 10% interest rate which is what I am told is all I can get. I don’t want a scam lender is all I meant. I do have decent credit history besides the bankruptcy and I have a full time job that I have been at for 4 years. I make enough to qualify for a $ 50,000 loan thats all you need to know.

5 Thoughts on How can I find a home loan after 1 year of bankruptcy?
  1. Reply
    July 2, 2012 at 12:45 pm

    Most lenders will not even consider you for at least 3 years after a bankruptcy. And most mortgage companies will not do mortgages for loans of less than $ 50,000.

    EDIT: Did you obtain the 650 credit score from an actual credit reporting bureau? Did the place where you applied tell you this was your “true” credit score? 650 sounds high for someone who just declared bankruptcy. I’m willing to bet your score is much lower. “Honest” lenders are going to tell you the same thing all of us are trying to tell you–you aren’t going to be “credit worthy” for a couple of years. The lenders are not being unsympathetic or inconsiderate, they’re being “practical” and “honest”. Look at what happened to the lenders in the recent past. People that really couldn’t afford “the American dream” of home ownership received loans they were not financially prepared to repay. The people were given loans for 125% of the home’s value and now those people have defaulted on the loans and the homes have gone into foreclosure. There are rules and regulations the mortgage lenders must abide by.

    If by chance you find a lender that is willing to take a chance on you, you are going to have a very high interest rate–more than 10%. A rate that high is not worth it. Be patient, save your money and you’ll be able to purchase a home in a couple of years.

  2. Reply
    Casey Y
    July 2, 2012 at 1:17 pm

    “I know lenders don’t have a heart or really give a crap about that but that’s the situation”
    It is a business and totally dispassionate from their perspective.

    “I just want an honest lender that will possibly lend to me.”
    Why would an honest lender give you money? You just filed for bankruptcy (the reason is irrelevant) and you are a one income household. What kind of income do you have?

    What you want and reality are, sadly, two different things. I am not trying to be cruel, just trying to give you a wake up call.

    Good luck in your future, I sincerely mean that.

  3. Reply
    July 2, 2012 at 1:45 pm

    I’m sorry, but if you can’t get an FHA loan, there’s no way you’ll be able to get a conventional loan. Banks don’t care what you say, they care what your record shows. Your record says that you are not a reliable investment. I’m sure you knew that’s what you were signing up for when you filed bankruptcy. Even if it “wasn’t your fault” and you did your best or whatever, the bank does not care. A good credit score does not overshadow the fact that you just filed bankruptcy. History shows that it will take 5 to 7 years after filing to be able to qualify for a loan. I agree with the previous poster that any “honest lender” will not and should not lend to you.

    Our whole housing crisis of 2008 was in large part due to lending to people who couldn’t afford to be buying houses…too many sub-prime mortgages. I hope for the sake of our country that banks know better than to attempt this again. The laws have been tightened regarding all of this…sizes of down payments, who can attain loans, etc. so I think you’re just going to have to stick it out.

  4. Reply
    July 2, 2012 at 2:07 pm

    check into a USDA loan.. they will forgive the 3 year bankruptcy rule as long as you have at least a 640 and no collections on your report… they are no downpayment, no mortgage insurance.. you have to make under a certain amount of money to qualify.. you will have to apply through the rural development office in your area.. if you need any help, feel free to drop me a line.. going through the process right now.

  5. Reply
    Lovin Summer
    July 2, 2012 at 2:56 pm

    I know you said “don’t answer if you’re going to tell me I can’t get a loan” well…the truth YOU CAN’T! Most lenders will not even consider giving you loan after only a year after a bk. And your credit score is not decent…it’s 650. That’s low when considering a mortgage loan. (I have a 801, we qualified for a great loan) and when you say “you’re throwing your money away”, well you’re not…you need a place to live, don’t you? I’d say to wait for a few years more and save as much money as you can. Maybe work on increasing you credit score in the mean time? The better the score, the better the rate. Remember that. Good luck

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