My husband and I live in Ohio and are looking at buying a home (we rent now, and have never owned a home). We found one for $60,000. My credit score is a 550 (not great!!) and he has a bankruptcy filed about 5-6 years ago (we aren’t sure of his score). – therefore, it won’t drop off for another year or so. What are our changes of even getting financed? AND, more importantly, what would an average APR be in a situation like this, with ZERO down? Any idea what our monthly mortgage payments would be, etc. Thanks so much!!
It does not matter that your husband had a bankruptcy that long ago. You can find FHA lenders that will do a mortgage after 3 years out of a BK. With your score of 550, I would also suggest a look at an FHA type of mortgage. Your chances of getting financed will be a direct reflection of how you have paid your bills that get reported to your credit report. I would suggest finding a reputable mortgage broker in your area and have them review your credit report on both of you. Be sure they are knowledgeable in FHA loans. If I had to guess on an APR, I would think from what you have stated, that you could
roughly figure 7% which would come to $399.27 per month.
Don’t forget you have to add taxes and insurance to this. It will
probably add another $100-$150 on average
New home buyer? Mortgage rates?
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First of all, the lending institutions have tightened up their guidelines in light of all the sub-prime issues going on. With your credit score and a bankruptcy- chances are… no bank will finance you with 0 down. They may require you to put a good sum of money down before they will finance the rest, your interest rate will not be the lowest, going rate either. Without knowing some details…. term and interest rate…. it’s hard to tell what your payments will be. You can go on yahoo finance and there is a calculator to help you figure all of that out.
References :
It does not matter that your husband had a bankruptcy that long ago. You can find FHA lenders that will do a mortgage after 3 years out of a BK. With your score of 550, I would also suggest a look at an FHA type of mortgage. Your chances of getting financed will be a direct reflection of how you have paid your bills that get reported to your credit report. I would suggest finding a reputable mortgage broker in your area and have them review your credit report on both of you. Be sure they are knowledgeable in FHA loans. If I had to guess on an APR, I would think from what you have stated, that you could
roughly figure 7% which would come to $399.27 per month.
Don’t forget you have to add taxes and insurance to this. It will
probably add another $100-$150 on average
References :