Financing with a BK - Posted by Dianna

Posted by Paul Macdonald on November 14, 2000 at 12:14:59:

The lender’s products sound a little high but not too much for the first (providing its a conforming, conventional). A no-point vanilla loan for someone who’s never had a BK, with fully documented income is going to be in the 8.5% range right now. What you’re asking for is a post-BK, stated income/no income verification loan. Your loan is going to cost more, period end of story. What I don’t understand is why they have to kick you over to a second, specially at those rates.

But it all depends on scores and purchase price primarily. The standard underwriting formats for post-BK deals is 4 years before they allow you back in the door. At 3.5 years, good cash down, restablished credit you’ve got a good shot at an exception. The bad scores don’t help at all. Easy enough to find out though.

If you tell me what your scores are, and the state where you want to buy I’ll make some calls for you if you’d like.

What is the target purchase range you’re looking for? 50k on a 100k purchase is great. 50k on a $1,000,000 is not so sweet.

Financing with a BK - Posted by Dianna

Posted by Dianna on November 12, 2000 at 11:09:45:

Dear Ed, I filed Chap. 7 May 97’. I have had no debt or late payments but my FICA scores continue to show low. I have reestablished credit as well as have Excellent Old Credit. I am self employed and look not so hot on paper. Lenders say my only recourse is to do “No Qual”. I am a first time buyer, and have been told that due to my BK they would loan me 90% split out with two lenders. First note: 93/4 Second note: 14% This makes it extremly difficult to afford the median cost of housing in OC. My gross income is: $75k per year with an annual increase of $10K per year, (verifiable.) Am I stuck with paying these kind of interest rates? I have $50k for Downpayment, debt free, and own my car. Please tell me I can get a loan for less? I can verify income, but again, my adjusted gross would hurt me. Your advice would be greatly appreciated!