Regarding down payments when purchasing a home.?
We are just out of a bankruptcy and are wanting to purchase a home again. We have no money for a down payment. Can a down payment on the home be financed along with the mortgage?
We are just out of a bankruptcy and are wanting to purchase a home again. We have no money for a down payment. Can a down payment on the home be financed along with the mortgage?
Debdeb
Favorite Answer
This will depend on your cicumstances and the lender's policy. Some lenders are pretty unforgiving. Any BK on the bureau is an auto decline. They may re-consider you based on the type of BK, whether they lost any money, and what's happened since. The bank I used to work for did it this way. At least 2 years, not single slip since them...not a late payment, all new credit clean and that bank can not have lost a cent. AND there must have been a mitigating circumstance...the BK can't have been your fault. Losing your job or getting divorced are not acceptable reasons. Someone got sick -- that's pretty much it.
The bank I work for now doesn't have an auto decline. If the first line review can't accept the loan, it goes to an underwriter. Our criteria is that it was FILED at least 24 months ago, and discharged. It's just one factor of a huge puzzle. The lender really makes a difference in your chances.
H. A
Yes, in some cases, but you can't because you are just coming out of BK. You must rebuild your credit and get your credit score up into the seven hundreds to get a 100% cconventional loan, maybe six hundred eighty will do it on a full document, but it will be tough. FHA offers you your best choice, but you need at least two years in between the discharge and the purchase, unless your BK was a Chapter 13, then you can buy now, if you paid the chpt. 13 on time during the whole time. You will have to get a buyers assistance program in order to go 100%, and that is when the down payment is financed into the mortgage, as well as most of the closing costs and prepaid items. Contact your local mortgage company and you probably want to talk to two of them at least.
Expert8675309
Why not WAIT instead of getting yourself back into the same financial mess that lead you to the bankruptcy court to start with.
First, you CANNOT finance a downpayment. Second, no bank will loan you (including FHA) 100% financing with a recent bankrupcy.
Wait 4 years, maintain PERFECT credit, and then apply with an A-paper bank so you won't have to Rob Peter to pay Paul and end up with a foreclosure too...b/c THAT will bar you from buying a house until both falls off your credit.
There is a difference between needs and wants...if you have an apartment, you don't "need" a house.
smiley20903
There is no lender that will will finance a down payment on a mortgage to a borrower that just came out of a banruptcy. 100% financing is becoming harder and harder to get. You should wait at least 2-3 years before you buy again especially if you have no money to put down on a home. First and foremost work on rebuilding your credit and saving up for a down payment because now you wouldn't qualify for any type of loan that would be beneficial.
Flatpaw
A while back lenders were very hopped up to give 100% loans, or an 80% loan plus a 20% loan. But these are many of the people who are really having trouble with their mortgages now, and since house prices are nosediving, the house isn't worth what is owed on it. So lenders are avoiding those kinds of loans for now.
If you are just out of a bankruptcy, you may have a hard time getting any kind of a loan this soon, as you have shown your financial irresponsibility.