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What kind of mortgage interest rate can I get with a 660 credit score?

I have a Chapter 7 Bankruptcy that was discharged 3 years ago. Will mortgage lenders even consider me for a loan of $100,000, with a gross yearly income of $75,000?

Since my bankruptcy, all of my payments have been on time, paying off credit cards (I have two) monthly. I have a school loan paid up to date, and no other bills. I check my credit score monthly, and for the past 6 months my score has been hovering around 660. I know it takes time, but what may lenders be willing to offer me with my current status? Should I wait another year or two before applying for a first time home loan?


Would renting an apartment for a couple of years "up" my credit score, and look better for lenders down the road?

Update 2:

I guess I'm in a "toss-up" between buying and renting. I just don't want to waste any more money on renting. But I'll rent again if it looks good to lenders, and a better interest rate. I know I have to pay somewhere along the line due to my own past financial mistakes.

6 Answers

  • 1 decade ago
    Favorite Answer


    Clean up credit .....Lexington, Ovation or do it yourself letters off of net.

    Pay extra on all credit cards, student loans to build up your fico. Do NOT apply for any new credit. Opt out of all pre-approval nonsense. These soft and hard inquires bring down the fico.

    Your 660 is a decent score......the higher your score the lower your interest rate will be.

    Most lenders will give a 100% LTV no money down loan for 7% if cash flow is tight. Put 25% down and with your 660 fico you can get a much lower interest rate than 7%.

    Source(s): CF
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  • 1 decade ago

    You will be able to get an FHA loan, especially if there is a good explanation for the bankruptcy (illness, car accident, medical bills). there are lenders that will gladly give you a loan (the rate may be a little higher because of the bankruptcy, but you can get a loan). I don't know what state you are in, but we lend in most states, and I do these loans all day long. You will need a good explanation letter, and the bankruptcy must be discharged (can't be in Chapter 13 and still paying). If you have any other questions, I'm here to help

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  • 1 decade ago

    check with your local banks and financial institutions.

    of course this will vary with every person. things they will consider are:

    your income

    time on job

    credit (of course)

    down payment you are able to provide

    any judgements / liens

    in today's market it is hard, but it can be done with hard work. the problem is that currently the foreclosure rate is up and skyrocketing more every day.

    One reason for the foreclosures is the ARM loan (adjustable rate mortgage). people went into these loans at a time when the interest rates continue to rise and their property values are falling. so stary away from ARMs.

    you want to concentrate on gettting a 30 yr fixed , no prepayment penalty loan. that way you will know what your payment is every month.

    also stay away from people on the internet who say "email me..i can help you"

    they cannot will only go deeper into debt and possibly lose your identity. stick with your local banks.

    good luck

    Source(s): 40+ years experience
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  • 1 decade ago

    'A' paper is currently running around 6.4% give or take. With a 660 you're probably looking around 7% or a bit more especially with a BK on your record. It's probably doable, but shop around carefully.

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  • Anonymous
    1 decade ago

    You really need to talk to several loan companies, preferably local ones, not internet companies. I'm finding some of the internet companies are still making it sound really good upfront, then when you're ready to get onboard, the rules changes. So take my advise, I'm in the business, talk with local loan companies first.

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  • Anonymous
    1 decade ago has a post bankrupcy program designed to assist first time home buyers in finding their home. Please feel free to visit our website and utilize our mortgage calclulator, free rate quote or speak directly to a mortgage consultant. Best of luck.

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