How to qualify for a bad credit mortgage loan after a bankuptcy?
Monday, January 23rd, 2012 at
10:47 am
Question by Rob I: How to qualify for a bad credit mortgage loan after a bankuptcy?
Could I get a rate like 8% with $ 5000.00 dollars down payment on a 30 year fixed on a $ 100000 dollar mortgage?
Monthly mortgage payment would be around $ 900.00 dollars a month and closing costs would be around 2000 dollars?
Best answer:
Answer by Wayne Z
Doubtful.
If anyone is willing to do the loan, which is unlikely, the rate would be higher and your required down payment would need to be much higher.
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Tagged with: after • bankuptcy • Credit • loan • Mortgage • Qualify
Filed under: Bad Credit Mortgage Rates
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NO.
Bad credit and no lender will consider you. With all the foreclosures lenders have tightened their guidelines
With such a small down payment that means an FHA loan and they are the strictest.
No your monthly payment would be much more since you left out PMI, Property taxes and homeowner’s insurance
Closing costs would be more like 5k to 8k No way can you pay for an appraisal, inspection, title search, title insurance, registration fees and so on with just 2k
That is barley a 5% down payment. Even when the market was good they wanted at least 10% + costs up front. Today it is closer to 20% and your bankruptcy does not help matters. Before applying, go talk to the bank or the realtor & see what they say about your chances of getting a loan. Find out what they want before doing any paperwork.
Footnote; $ 900 x 12 months = $ 10800 + escrow + insurance. That is a big chunk of money per month just on the mortgage. You still have to cover upkeep, plus utilities, groceries, the car etc. Make sure your paycheck can support this.