Question by bbwg_hbic: Where can I get a loan for a home when I have filed bankruptsy?
I need to get a home loan but I went through a divorce and filed bankruptsy. I make good money so I can pay a mortgage. Im in an apartment now and pay my bills fine. and my credit has been good before and after bankruptsy. Except for about 6 months before I filed. Ive tried to get a loan for a home and have been turned down because of my credit score caused by bankruptsy.
Best answer:
Answer by stevemorbitzer
You need to call a lender and ask for counseling. Ask a real estate agent in your area for a referral. The lender can tell you what to do to get your credit cleaned up or ever a loan. It may be higher interest.
You can also look in the paper for “Money to Lend” in the classifieds.
What state are you in? Feel free to e-mail me.
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Question by I just LOVE LOVE!: When you go to underwriting for home loan approval do you have to have the down payment funds?
When you go to underwriting for home loan approval do you have to have the funds in your account for the down payment or can you get an approval contigent upon having the funds?
Best answer:
Answer by Landlord
You need prove of funds, visit this site including a paper trail of the funds for the last 3 months.
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These days the underwriter will: (a) need a bank statement in your name showing the funds are in an account with your name on it, and (b) if a large deposit is fairly recent, or even if it is not that recent, they will want some proof of where the money came from (sale of a car, you would need to bill of sale, etc.) They have really tightened up on this and it is pretty much a case where you must have the cash and you must prove you didn’t borrow it from a relative or friend.
It depends if it’s the initial underwrite or final. If it’s the initial underwrite the underwriter can condition the file, but not currently having the assets is a problem. Unless you are receiving gift funds the assets have to sit in your account for 2-3 months before they can be used. If your bank statement shows a large deposit the u/w will require a paper trail.
If this is the final underwrite the loan will be denied.
Once the loan is in underwriting (meaning you are under contract on the home), you will need to show proof that you have the funds. If the money is your own, you will need to show that you’ve had it for at least three months. If you have an FHA loan and the money is a gift from a relative, they will need to write a check out to you that you will need to deposit into your account. The lender will need a letter signed by the person who is gifting you the money, a copy of the cancelled check and a copy of your bank statement once the money has been deposited.