Home Loan For People After Bankruptcy...Need Advise!

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Q. Just to give you a little detail about myself. I am 25 years old. I accumlated some debt while I was in school and couldn't handle the payment anymore so I filed for bankruptcy back in June of 2002. It has been almost 3 years now. Since then, I have been in a stable job making around 60k a year. I am single with no kids. Here are my expensive that I have which isn't much. 1. rent with utilites is 700 2. 10k student loan with a 180/month plan. 3. Insurance 150/month Thats pretty much it. I have no car payment. Insurance isn't that much. I don't have any credit card except a debit card from bank. Other than that, thats it. I was wondering what are my chances of getting a house loan? how much of a loan? what are my interest going to be? My FICO score is like 580 or something. I have about 10k saved up. I have about 12k in 401k investment. Other than that, thats pretty much it. Some other question: how would I improve my chances of getting a good home loan? I know about opening a secure bank card, how do I go about doing that? what company are good? and what company I should stay away from? Thats pretty much it. If I can get some advise, I would greatly appreciate it.

A. The only way you will know for sure is to go to a mortgage lender (or three) and ask to get "pre-approved". They will run through your situation, and tell you the real deal. A 580 is pretty weak, but with your savings and income, you will probably qualify for a brokered loan, perhaps at 2 or 3 percent above the market rate. Who knows until you ask. Keep in mind that $60K in income is not going to support the kind of payments for a very expensive house. Think starter house. As it turns out, renting is a great deal right now. Many rental properties are renting for far less than what they should cost based on their market value. Perhaps your best strategy would be to find as cheap of place as you can to rent for a few years. This will let you build up more cash for a better downpayment, and time will elapse, which will dramatically improve that lame credit score. I appreciate the feedback. I am gonna go to a lendor but just want to get some straight answer and facts before I do. I am not looking to buy an expensive house, just something around 250k or so. The company that I works for is willing to help me with a down payment. My question is, how much should I put down? I know if I put down 20 percent, it will look attractive to the loan officer considering my bankruptcy. I have heard that some leader will oversee the bankruptcy after 3-4 years if you show them that you take good care of your money and what not. Is that true? When you say pay back your charged-off debts? you mean to tell me to call the creditor and ask them that I am going to pay them back even after it is being discharged? wouldn't my credit history still be the same after i do that. I know I have made some mistake in college but it happens and now I have to deal with it. You live and learn. you must have missed the recent article in the Palm Beach Post about the guy who just bought a brand new $840K house from a developer in an upscale neighborhood. It seems his gross income is only $35K. I forget exactly how the deal was structured but went something around $9K down and all of the interest was simply added to the back end of the loan for five years. At that time, he either better have it sold or the proverbial poop hits the fan. can you explain what the exploding ballon loan is about? also I don't know if this matters or what but I am getting a salary increase to 72k a year. in addition to that, I forgot to mention that I have a side consulting job that brings in roughly 500-700 a month. Well as of right now, I am going to still rent but would like to get into a house down the road like end of this year or beginning of next. I am saving as much as I can. I have been told that the market is so booming in california that everyone is buying these houses. Even people that can't afford it are getting it because they can by just paying full interest and on a varible rate instead of fixed. Someone mention that in a year or 2, if the varible interest goes up, these people will have to default their house because they can't afford it any longer. Is that true? will that be my chance to snatch up a good deal on a house.

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