I want to buy a home - but I claimed bankruptcy and it was discharged in 2004, does anyone know ...?

Question

any mortgage companies that help anyone who has claimed bankruptcy purchase a home - I have a co-signer but his credit isn't that great?

Answer 1

the bankruptcy follows you for 7 years.  a co-signer with bad credit is not good.  the bank may not accept him.  you have to try different banks or mortgage companies until one accepts you.  get approved before you go shopping for a house.  if you do get accepted, be ready to pay high interest rates.

Answer 2

Lot of different ideas here.  I'm an underwriter and loan processor, and this is the way it is at my bank.

If your BK was discharged at least 2 years ago, and you've not had a single slow pay since you filed, and we didn't lose any money, and you have a good relationship with us, and the reason for the BK was out of your control (divorce and loss of job or business are not acceptable reasons, basically someone had to be sick or your business partner ran off with all the money) AND a personal banker will call the underwriter to review the loan since all applications with a BK on the credit report will decline automatically, you might get a loan from us.  

Other lenders I've worked for would allow a previous BK if it was filed 2 years ago and is now discharged (that could have been this morning) and your credit score now is adequate.  

You have to talk to a few lenders to find out what they'll do.

Bankruptcies stay on your credit report for 10 years, discharged or not.

As for a co-signer, most lenders these days will require that you qualify on your own.  They may count the co-signer's income, but they'll also count his debts.  His credit history will not help you.

Answer 3

If your bankruptcy was discharged, it will not show up on your credit report.  Is your credit now good enough so you don't have to get a co-signer?  I'd try that before putting a person's name on with bad credit.  You should be able to get your home on your own merits now that everything against you has been discharged.

Answer 4

If you have kept your credit in good order since the bankruptcy and it has been more than 3 years there is a good chance that you can qualify for a loan.  Many mortgage companies will work with you, providing your current credit since the BR is good.