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I am 1.5 years out of BK looking for a loan. Will this affect my interest rate?

by f.mills609 from Serafina, New Mexico. May 31st 2016 Reply


Joseph Afonso (jafonso)
#65 ranked lender in Arizona - 195 contributions

This may effect the interest rate offered it will depend on what type of financing is offered.

May 31st 2016
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Not directly, but it will affect your credit score which may affect the rate. If you've reestablished credit that will help you. I'm here in New Mexico if you'd like to talk about your options. 505-350-3745, Charlie Sparks, NMLS 195031, Pinnacle Capital Mortgage. Thank you!

May 31st 2016
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Lorne Harvey (lorneharvey)
#1 ranked lender in Washington - 418 contributions

Unless you are a veteran, you have another 6 months to qualify for an FHA loan, assuming your BK was a chapter 7. I would have a lender check your credit and make recommendations on action items to take care of any credit items that can be repaired. That way you are ready when the waiting period is up.

May 31st 2016
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Melissa Stutes (MelissaStutes)
#28 ranked lender in Hawaii - 97 contributions

It may have affected your FICO score. Your interest rate will be based on these factors...such as FICO score, loan amount, loan-to-value and property type. Hope that helps!!

Jun 1st 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

Much more info needed.. (BK13 or BK7?, Foreclosure? Short sale?, etc.. ) but in general, It's possible you wont even get approved.. let alone the interest rate being higher.. First, since your only 1.5 years out of the BK, your scores are probably still low.. too low for most lending programs. Better loan pricing is reserved for higher credit score borrowers... 2nd, most lending programs have mandatory waiting periods before you can purchase.. For FHA, it's 2 years, and if there was a home/mortgage involved with the BK, then it's 3 years.. Conventional will make you wait 4 to 7 years, depending on your scenario, and VA (must have VA eligibility), will make you wait 2 to 3 years depending on your scenario.. Realistically, if you want to know if and when you can purchase, you should try contacting a a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Jun 1st 2016
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,446 contributions

Yes, no, and maybe... We don't have enough information. If it was a chapter 13, you can get a standard FHA loan today, and it will not effect your score. If it is a chapter 7, you need to be at least two-years past discharge to even get an FHA loan, and that also would not effect score. Conforming conventional needs to be at least 4-years old. If you need to get a non-traditional loan today, you for sure will pay a higher rate.

Jun 2nd 2016
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