chances of homebuying with bankruptcy?
Question: dear friends, my wife and i have a friend who was recently turned down for a loan to buy a house because he filed bankruptcy after his first marriage. we were wondering what are his chances for getting a loan? his wife doesn’t work so he’s the breadwinner and his income is 70 or 80,000. they have a little girl, their family values are excellent, he’s so intelligent and as a husband and father follows solid morals–what a sad process homebuying must be if they can’t qualify for their own home!
Answer: There are several programs which as sponsored by FHA which would most likely suit your friend. As long as the bankruptcy was discharged over 3 years ago, he can get funding for as little as 3% down. If it is less than 3 years, I would recommend that he look for an investor owned property that he can lease with the option to buy, and set up terms that are favorable to both parties. Also, with a good income he could look for a FSBO who is willing to carry a note, or who wants to sell the note at a discount upon closing.
These are just several ideas “off the cuff”. I would be happy to provide more detailed assistance, if you wish. If your friend’s credit has been perfect since the bankruptcy has been discharged and his income is verifiable, he may have several options. If your friend would like me to discuss his options with him, e-mail his name, address and telephone number so I can get specific information and be able to help him based on his specific circumstances.
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