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Anything I can do to get a more favorable house loan?

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I filed chapter 7 bankruptcy 18 months ago and discharged in March 2017.  I have had great luck getting credit cards with capital one, discover and I have been offered many others.  I currently have a 700 credit score and a current home loan on an investment property.  I also have a new car with 3.8%.  I just want to get another home at a reasonable rate, but I am unable to do much of anything unless I want to pay 9% interest rate.  Is there anything I can do to get better rates?  It baffles me that I can have such a good rate for a car but can’t buy a $75,000 home unless I pay thru the nose. I hate to say this, but I would do anything to get that bankruptcy wiped off.  I’ve heard there are some companies that claim they can do this.

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I think the Freddie Mac guidelines are for a BK to be 2 - 3 years out before you apply for a mortgage which is why you are being quoted such a high rate. This means you will need to wait another 6 - 18 months before you can get a decent mortgage rate.

As for wiping a BK off of your credit report, it will never happen. A BK is a public record from a courthouse and even if you get it wiped, it will make it back relatively quickly as the reporting agencies download data from the BK courts all of the time. Not only that but if you lie on your mortgage application, the loan can be accelerated, you an be foreclosed upon, and you might be criminally charged with fraud for not reporting the bankruptcy. You are also required at closing as part of the loan documents to sign and notarize a document that says you have not declared BK in the past 7 years.

You best bet is to wait just a little more time and let your credit heal some more.

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On 12/10/2018 at 5:30 AM, WhoCares1000 said:

I think the Freddie Mac guidelines are for a BK to be 2 - 3 years out before you apply for a mortgage which is why you are being quoted such a high rate. This means you will need to wait another 6 - 18 months before you can get a decent mortgage rate.

As for wiping a BK off of your credit report, it will never happen. A BK is a public record from a courthouse and even if you get it wiped, it will make it back relatively quickly as the reporting agencies download data from the BK courts all of the time. Not only that but if you lie on your mortgage application, the loan can be accelerated, you an be foreclosed upon, and you might be criminally charged with fraud for not reporting the bankruptcy. You are also required at closing as part of the loan documents to sign and notarize a document that says you have not declared BK in the past 7 years.

You best bet is to wait just a little more time and let your credit heal some more.'

It says 4 years for normal waiting period and 2 years for extenuating circumstances.  What are extenuating circumstances?

 

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You would have to ask Freddie Mac to define that but I would bet that would be something like you losing a current home to a natural disaster such as the Camp Fire. I would doubt most people would full under extenuating circumstances.

If their website says 4 years, then that is how long you will have to wait to get a conventional mortgage. In the meantime, the only thing open to you is the subprime market where they will nail you to the wall with interest rates. Best to wait the next 2.5 years and bank up as much money as you can for the down payment.

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