I have been house hunting as I found a HML who would do 20% down 5 points and 7.9% because I have a middle score of 684.
However after talking to a new real estate broker today, he informed me that FHA guidelines have changed and since my BK13 is now 12 months old (I filed in Nov 2013 and started my first payment in Dec 2013 and plan finalized in May 2014), I can qualify for FHA 3.5% down loan with a 3.25 rate and PMI is 1.75% of the loan.
So now if I can, I want to switch gears in what I was looking for. I feel I still go with at least 10% down if I could get FHA.
On the website it states, you need to summit reason for BK13. Mine is b/c I had a mortgage foreclosure on a preconstruction home in 2007. It is way past the 3 yr requirement but the wage garnishment hit in Nov 2013. Also in June 2013, my primary was in foreclosure (I was upside down over 200K with a I/O loan) and with help from lawyer we gave home back (deed of lieu you can say). NO MORTGAGE’s that report negative are on my credit. only older positive ones that were sold off.
I know Deed of Lieu has a bearing but since mortgage not reporting anymore, can I bypass that rule.
Whats chances of an FHA??