Can I Get a Mortgage After a Bankruptcy?
Yes. No. Maybe. It depends.
You can guess that in this day and age there are far more bankruptcies we must contend with as lenders than in times past. It used to be that maybe 1 out of 50 applicants had filed bankruptcy but it is now closer to 1 in 10. Some days it is 1 in 1 – like today. Fortunately for you this has inspired a post so if you are in this situation and found this article by searching on the terms “how does bankruptcy affect my ability to borrow” or “can I get a home loan after bankruptcy” this should help. Please keep in mind that lending guidelines change regularly and, unless otherwise noted, this is information for conventional home loans in September of 2011. Call me or contact me for updated information or more specific answers.
Borrowing may be possible depending on a few things:
- How long since the discharge date
- What caused the bankruptcy – financial mismanagement or extenuating circumstances
- No negative credit impact since the discharge date
- Was there a foreclosure/short sale/deed in lieu in the bankruptcy
- What type of loan are you applying for (conventional, government, non-conventional)
- What Loan To Value (LTV) are you seeking
If you are looking for an FHA loan with 3.5% down and it has been three years since your foreclosure and you have not had any negative events on your credit and you otherwise qualify you should be able to achieve financing without further factors. Fannie Mae wants to know what happened to cause the bankruptcy and they want you to have waited 48 months from the discharge date for both 7 and 13.
While FHA will allow 3 years from foreclosure FNMA is stricter and looks for 5 to 7 years and still needs a minimum of 10% down and can be used for primary residence only.
Image: Salvatore Vuono / FreeDigitalPhotos.net
I am a multi-year veteran of the industry who has served in the highest offices in the industry. I can help you get the best deals and avoid getting ripped off!
Contact form on this web site
Atlanta Real Estate Report – August 2011
Atlanta Luxury Home Market – People are always asking me, how’s the Atlanta real estate market? In August 2011 there were 32 luxury homes that sold that were listed for over $1,000,000. In August 2010, that number was pretty close to the same with 28 luxury homes sold.
| August 2010 Sold 28 Atlanta Luxury Properties Listed at over $1 Million | ||||||
| Bedrooms | Full Baths | Half Baths | List Price | Sale Price | Days | |
| Min | 4 | 3 | 1 | $ 1,000,000 | $ 850,000 | 11 |
| Avg | 5 | 5 | 1 | $ 1,527,433 | $ 1,317,598 | 193 |
| Max | 7 | 8 | 3 | $ 2,795,000 | $ 2,400,000 | 805 |
| August 2011 Sold 32 Atlanta Luxury Properties Listed at over $1 Million | ||||||
| Bedrooms | Full Baths | Half Baths | List Price | Sale Price | Days | |
| Min | 3 | 3 | 1 | $ 1,099,000 | $ 520,000 | 0 |
| Avg | 5 | 5 | 2 | $ 1,886,065 | $ 1,620,534 | 116 |
| Max | 7 | 8 | 3 | $ 10,000,000 | $ 9,000,000 | 454 |
What was the difference?
In August 2010 the lowest sales price was $850,000 with just 11 days on the market. The average number of days on market for all the luxury homes sold was 193 days and an average sales price of $1,317,598. The highest price Atlanta luxury home sold for $2,400,000 with 805 days on the market.
In August 2011, we saw a decrease in the number of days on the market in the Atlanta Luxury Home Market. The lowest number of days on market is 0, yes, not even 1 day on the market for a home that was listed at 1,099,000 and sold for $520,000 in McDonough. The average number of days on market for all luxury homes in the Atlanta area was 116 days with an average sale price of $1,620,534. The most expensive luxury home that sold in August in the Atlanta area was $9,000,0000. It was on the market 454 days.
Many of the Atlanta Luxury Homes are in golf course communities with fabulous amenities.
Where did the Atlanta area Luxury Homes sell in August 2011?
Buckhead - 8 of the Luxury homes sold in Buckhead
- London Estates in Atlanta
- Kingswood – Atlanta Fulton County
- Woodward Investment (near Buckhead in Atlanta)
- Sugarloaf Country Club in Duluth – Gwinnett County – 2 of them sold here – For the same time period last year, 4 Luxury Homes sold at Sugarloaf
- Peachtree Manor Heights –Atlanta in Fulton
- Atlanta National in Alpharetta in Fulton
- St. Marlo in Duluth Forsyth County
- Tuxedo Park – Near Buckhead in Atlanta
- High Gates on Robinson in Marietta – Cobb County
- Chatham Park in Roswell –Fulton County
- Riverwood in Johns Creek – Fulton
- Sentinel Ferry at the River in Sandy Springs –Fulton County
- Lake Lanier in Cumming – Forysth
- Atlanta National – On the Golf Course in Alpharetta
- McDonough in Henry County
- Atlanta Country Club in Marietta
- Country Club of the South in Johns Creek –Fulton County
- Chastain –Atlanta Fulton County – Last year same time period 3 Luxury homes sold in Chastain
- Spalding Stables Estates in Atlanta – Sandy Springs area of Fulton County
- Chatsworth in Atlanta near Buckhead
- The Enclave at Jett Ferry – Dunwoody – New construction by John Wieland
If you’re thinking of buying or selling an Atlanta Luxury Home, contact Jen Bowman, Broker Associate with Keller Williams Realty Atlanta Partners, Luxury Homes by KW at 404-456-5024.
I am a multi-year veteran of the industry who has served in the highest offices in the industry. I can help you get the best deals and avoid getting ripped off!
Contact form on this web site
Three Keys to Perfect Credit
These days it is almost impossible to get the best home loan without the best credit. During the “sub-prime” boom it was possible to achieve high balance financing with low credit scores if you had the right income and assets. During that time borrowers simply paid a higher interest rate to “offset the risk”. In today’s economy and lending environment, however, the industry has returned to more common sense lending practices. As a result having the best credit score and history possible is key to achieving the best home loans available at the best interest rate.
Key Number One
Have open credit with activity on it. The older the credit line and the better the activity on it the higher your score. New credit lines can temporarily lower your score until the reporting agencies see that you are going to manage your credit well. There are some offers in consumer lending which require the credit line to be at least 15 years old or older to qualify for the offer. This is generally for extremely low rate or high balance/high reward credit cards. So Key Number One is to actually have credit that has always been paid on time and is used regularly.
Tips for great credit for Georgia mortgages
Key Number Two
One of the best ways to tank your credit score and history is to make a late payment. Even a late payment on an auto or credit card can adversely impact your credit score and history enough to eliminate you from qualification for the best home loans. Some loans require there to have not been a late payment on any consumer credit in the last 12 to 24 months and most require no home mortgage late payments in the last 12 to 24 months. So Key Number Two is never pay late. By never I mean never.
Key Number Three
Keep your loan balances low. Paying a loan off, believe it or not, may have less of a positive effect than keeping your loan for the duration but paying it down quickly. With credit cards keeping a very minimal balance is key to increasing scores. For example if you have a credit card with a $5,000 limit and your outstanding balance is $4,900 this can hold your scores down. Conversely if you have a $100 balance on that same card you will notice an up trend in your scores. Likewise with car loans and other types of credit. Paying them off and closing them is not usually as good as paying them down and keeping them open. So Key Number Three is low balance to loan amount or credit line amount.
If You Have Questions
If you have questions about getting the best home loan to purchase or refinance a home loan in Georgia don’t hesitate to contact me. My office is in Marietta near the intersection of Windy Hill and Power’s Ferry so if you want to come by to discuss your situation and opportunities feel free to contact me to schedule an appointment. The coffee or soft drinks are on me! I specialize in Cobb County luxury home financing as well as any home for primary residence or real estate investment purchase or refinance in the north metropolitan Atlanta area of Cobb, Cherokee, Fulton, Paulding and Gwinnett.
Image: renjith krishnan / FreeDigitalPhotos.net
I am a multi-year veteran of the industry who has served in the highest offices in the industry. I can help you get the best deals and avoid getting ripped off!
Contact form on this web site
No Money Down Home Loan?
This is not one of those “dangerous” loans made during the sub-prime runup. In fact this loan pre-dates those loans and has performed very well over the years even though it does not require the buyer to have “skin in the game”. We’re talking about the section 502 Guaranteed Rural Home Loan available to homes in designated areas to buyers who demonstrate steady income and a good credit history.
Finding out of the home is in a designated area is simple and takes just a phone call or email. I can help you if your property search is in Georgia and it only takes a few minutes. Listen to this short audio message for more information and call me at the numbers listed all over this page and on the audio segment.
To request more information directly from me (I do not sell leads, ever) simply complete the form below or telephone me during normal business hours:
I am a multi-year veteran of the industry who has served in the highest offices in the industry. I can help you get the best deals and avoid getting ripped off!
Contact form on this web site
New Cobb County Luxury Homes Team!
There are hundreds of available luxury homes for sale in Cobb County. There are also many “cookie cutter” real estate agents and bank loan officers just waiting to push your offer through and get their commission. As a luxury home owner I myself felt treated like a commission check when I purchased my home. The loan officer worked at one of the big regional banks and truly treated us just like a number. Oh, she was pleasant enough when everything was going her way. I’m sure she made a $16,000 commission on our loan but many times we felt as though we were newlyweds purchasing our first mobile home.
Ken Cook's home at Christmas
People who can truly afford a luxury home live a different life and deserve different treatment. As a long time high level executive and business investor I understand how multiple streams of income, complicated tax returns and financials, and time constraints can really make a difference in how I can interact with the loan clerk at a bank. For this reason I handle all of the luxury home loans for my team.
Now here is the really good news!
As of September 1, 2011 I have teamed with seasoned luxury home broker Jen Bowman who is highly capable of finding the Cobb County luxury home which fits your desires and your needs. Like me she will deliver the personal touch you deserve to help with locating the properties, helping you select which one to invest your valuable time in visiting and negotiate the best deal available for you and, if it applies, your family.
Among the differences you can expect from the Ken and Jen team includes meeting you at your convenience and where you are. In those events where you, as a buyer, are incapable of coming to Cobb County to view the property we will offer a detailed video tour and seller interview where possible – even if the listing is not Jen’s. As a seller you can expect nothing but the best in hi-tech marketing, traditional marketing and attracting the type of buyer perfect and qualified for your home. Jen’s goal is 30 days on market and my goal is to get the offers in and closed in as little as 8 days.
With Jen’s connections to all things real estate, my history as marketing director for 3 large mortgage lenders and technical proficiency your listing will be seen and the marketing will invite offers from a wide range of viewers. Coupled with our relevant, local information on schools, parks, government, and the rainbow of venues in the immediate market area. There are as many reasons to list with Jen as there are to finance with Ken so purchasing or selling we fully intend to be the best!
I am a multi-year veteran of the industry who has served in the highest offices in the industry. I can help you get the best deals and avoid getting ripped off!
Contact form on this web site
No-Seasoning Cash Out Refinance on Investments
It’s back! A little common sense in lending can go a long way. From 2003 to 2009 I was tops in real estate investment lending in Georgia. I had the privilege of teaching in the John Adams Real Estate Investment Institute at Emory University and having the only lenders office inside the Georgia Real Estate Investor’s Association. Because of that and massive radio, cable and print advertising I was able to help thousands of real estate investors get started and stay successful through the bubble.
Play this short audio file for more details about the Non-Seasoned Cash Out Refinance for Real Estate Investors
I am a multi-year veteran of the industry who has served in the highest offices in the industry. I can help you get the best deals and avoid getting ripped off!
Contact form on this web site
Home renovation loans
So you find the home that really fits everything in your list – location, size, price range – except it needs a few upgrades or repairs. Conventionally you would need to be able to (a) get the house approved for purchase even with the necessary repair, (b) be able to fund the repairs out of pocket and (c) deal with the entire transaction with a lender who knows little or nothing about rehab purchases. Problem solved if I may be so bold.
Play this short audio file for more information.
I am a multi-year veteran of the industry who has served in the highest offices in the industry. I can help you get the best deals and avoid getting ripped off!
Contact form on this web site
Mortgage Insurance for Lower Down Payment
We have to face it – there just isn’t as much credit and cash to go around today as there was a few months ago. In spite of that fact people still have to buy a home from time to time for a plethora of reasons. Some may be transferring to new locations or simply graduating, marrying and buying a home. In fact the National Association of REALTORS has a prediction of 4.8 million homes being sold this year by members and non-member agents.
Bigger Families Need Larger Homes
A few months ago, less than 3 years, it was possible for a wide range of home buyers to purchase a home without making any down payment. While some of that activity is to blame for the mortgage crisis the truth is well qualified buyers have always had access to loans which would not require as much of a down payment especially with the use of a company which insures the lender against loss. The mortgage insurance companies have been around for many years and are very good at evaluating risk to their own investors as well as the market place. True enough some of them suffered huge losses after the “bubble burst” (aka market correction) but others had been a little more cautious on the run up and therefore did not suffer as great a hardship as others.
Who does Mortgage Insurance benefit?
That’s a two sided answer. MI benefits the home buyer because it allows them to purchase a home with a much lower down payment thus retaining their liquid capital or simply to make a lower cash injection at the time of purchase. Considering the down payment on a $200,000 home at 20% would be $40,000 and MI will allow a buyer to acquire the property with a down payment of as little as $6,000 I would say that could be a great benefit to the buyer.
Mortgage Insurance also benefits the lender. In fact if the lender does their job right, and most do, if the buyer ever defaults on the loan the MI company will be responsible for indemnifying the lender according to the policy provisions. It is an absurd assumption that MI companies and lenders collude on foreclosures “just to get the home” since MI companies actually fight with the lender to do their best to keep from paying the claim!
How much does Mortgage Insurance cost?
This varies by credit score, loan amount, property type, and a couple of other factors. Today I priced a 97% loan for someone with a 680 score on a $200,000 loan in Georgia and the amount was around $200 per month. Considering that will keep $37,000 in the buyer’s pocket I would call that a real bargain!
Do I have to pay Mortgage Insurance for as long as I own the home?
Mortgage Insurance can be cancelled when the amount owed on the home is less than 80% of the current value of the property. It is up to the home owner to keep up with this and notify the MI company. Obviously an acceptable appraisal or valuation per the MI company’s guidelines will be required. Typically this is about 5 years after the purchase in a stable market.
More questions about Mortgage Insurance
I can answer your mortgage related questions about purchases in the state of Georgia. Simply use the Contact Me form or call me at my office at 770-818-4365.
Image: photostock / FreeDigitalPhotos.net
I am a multi-year veteran of the industry who has served in the highest offices in the industry. I can help you get the best deals and avoid getting ripped off!
Contact form on this web site
Single Family sales values down again
Nationwide home sales values on average are lower than they have been at any time since 2003.
Single Family Sales Prices
To buyers this could mean good news but along with tightened underwriting guidelines, increased scrutiny of credit, income and assets, along with crazily erratic valuations through the ludicrous changes to the appraisal industry housing sales are beyond stalled.
While values are low, stock is plenteous, interest rates are phenomenally low and population is growing there are simply too many negative economic factors for the weakened housing market to begin recovery at this time.
For the housing market to begin recovery we need a minimum of at least three improvements:
- The jobs market must improve with millions unemployed and unaccounted for in the numbers the long term impact is yet to be registered. The jobs market must make a come back and only tax benefits to hiring employers and the reversal of the socialized health care (mandated) program will correct this.
- Consumer confidence is at an all time low. “Consumer sentiment unexpectedly decreased in May to the lowest level in six months as Americans grew concerned over the outlook for jobs and the economy, while a measure of home prices dropped to a nine-year low.” – Bloomberg.
- Consumer Price Index is up 3.6% which means inflation and higher cost of living. The real issue here is the CPI core (food, fuel) is up, too. This impacts the poor very harshly.
 |
 |
I am a multi-year veteran of the industry who has served in the highest offices in the industry. I can help you get the best deals and avoid getting ripped off!
Contact form on this web site
Home prices continued double digit decline
Chart: Median Sales Prices March 2011
Out of nineteen major metropolitan areas reported seven indicated a median sales price decline of at least 10% or greater. Atlanta, Baltimore, Cincinnati, Minneapolis-St. Paul, Phoenix, Portland OR, and St. Louis MO each surpassed the double digit decline year over year from March 2010 through March 2011.
For the first time in several years the median sales price of homes in the Atlanta MSA have dipped below $100,000 to $99,000 marking Atlanta as the lowest median sales price MSA in the national report published by the National Association of REALTORS® in April.
Coupled with excess inventory stretching into the year plus range and low employment rates in some of these areas recovery could be slow even though purchase opportunities abound.
I am a multi-year veteran of the industry who has served in the highest offices in the industry. I can help you get the best deals and avoid getting ripped off!
Contact form on this web site
Live Desk
Daily Rates for Qualified Buyers
Today |
Last Week |
|
| 30 Year Fixed | 3.56% | 3.61% |
| 15 Year Fixed | 2.87% | 2.92% |
| 5/1 ARM | 2.34% | 2.51% |
Credit Reports
Follow Me!
Archives
- October 2011 (4)
- September 2011 (11)
- August 2011 (2)
- July 2011 (1)
- June 2011 (1)
- May 2011 (1)
- April 2011 (4)
- February 2011 (2)
- January 2011 (1)
- November 2010 (1)
- October 2010 (4)
- September 2010 (1)
- August 2010 (1)
- July 2010 (4)
- June 2010 (2)
- May 2010 (4)
- April 2010 (2)
- March 2010 (7)
- February 2010 (1)
- January 2010 (6)
- December 2009 (2)
- November 2009 (7)
- October 2009 (12)
- August 2009 (4)
- July 2009 (2)
- June 2009 (6)
- May 2009 (9)
- April 2009 (7)
- March 2009 (10)
- February 2009 (9)
- January 2009 (20)
- December 2008 (15)
- November 2008 (20)
- October 2008 (3)
- January 2007 (6)
- December 2006 (16)
- November 2006 (6)
- October 2006 (8)
- September 2006 (13)
- August 2006 (12)
- July 2006 (15)
WordPress Sites
Twitter
Skype
