Many of our personal bankruptcy clients, now free of their debts, are looking for homes in this market. A problem for home buyers these days is that the FICO score has come to matter more and more following the credit crisis. Fannie Mae and Freddie Mac wont purchase a mortgage from the front line lenders if your credit score is below 620. This is notwithstanding the fact that many bankers will freely admit that the FICO score is not the best predictor of responsibility in consumer lending – home equity and debt to income ratio are far more significant. So is job stability and marketable assets.
We recommend that you work with lenders. Work on reestablishing your credit scores and research places where the magic cutoff number does not apply. The website Lending Art provides mortgage lenders credit score requirements.