I need help. I filed B.K 7 1.5 years ago. FICO around 690 and no more credit card debt and the used cars are paid off. I have about $6000 in cash and am stuck in an apartment. I did the whole credit repair thing and have 8 credit cards after B.K. My B.K is still on my reports and I am not worried about removing it. I do not need anymore credit cards and have good enough rates considering I will not need 2 carry a balance. Is it possible 2 get a mortgage at this point or 6-18 months from now? 30k income, the houses around were I live go for about $180k-$220k. Is it possible? HELP HELP HELP PLEASE PLEASE PLEASE!!! Should I save 4 more down payment? Oh ya I forgot 5.5 years at current job.
In general, you need to be two years out of bankruptcy to qualify for FHA if you have re-established good credit (which it seems you have). That's the discharge date, not the filing date. That two years can be reduced to as little as twelve months in some circumstances, but you have to be able to demonstrate that the bankruptcy was caused by something beyond your control. There are also non-FHA programs you could qualify for.
Non FHA programs? December will be the 2yr discarge date. My lease is until November 1st. Sept. will be the 2yr from the file date. I could move 15-20 miles away and get a house for lower like $130-170k or a townhome around here. Do I need more for a down payment? Non FHA programs? PLEASE help! Thanx for any replies.
Sorry. When I said non FHA, what I should have said is sub-prime. Two years is a very important milestone after bankruptcy. There is a huge difference in what you qualify for after 24 months compared to what you qualify for 23 months after bankruptcy. Can you buy a home now? Absolutely! But it will be a sub-prime loan, with blended rates in the mid 8's on a 2 or 3 year ARM with a prepayment penalty and maybe points as well. Should you buy a home now? Well, that's a decision only you can make, but in my opinion you will get much more value if you wait until December and use the extra seven months to save more money. This timing isn't good for your lease, but that's something you can work out with your landlord.
You can get a stated income/asset loan with your credit score.Contact me if you live in Florida. All72569@yahoo.com
First Franklin is a sub-prime lender. If I were shopping for a sub-prime loan, I'd recomend a broker experianced in sub-prime rather than any one company. Why? Because if you go to First Franklin, Citi, Beneficial, or whatever, they only have their programs to off you. If you go to a broker, he gets to choose from all of these companies programs.
Is it 24 months from the file date or discharge date? I will wait either way since my lease is until November. Filed 9-01 Discharged 12-01. I can go month to month on the lease after November for $30 extra a month. $30 isn't much if I could save % on a 30yr mortgage. How would a FICO around 705 at that time look with 2 yrs past. I know don't open any more cards or buy a car. 30k income for around $140k-$160k mortgage. How much down payment would I need in this situation and is it even possible? A mortgage broker seems to be on your side but they charge like $1000-$5000 I think. Any help here at all would be great!!! I have $0 credit card debt and no loan debt at this time. I am currently paying $1005 in rent. HELP if you can at all!!!
With making only 30K a year I would be reluctant to have a mortgage that high with only making that much a year. A home that is around 170 to 200k could mean a mortgage payment with taxes costing you most of your take home income. Not much left to live on and have a life. Just make sure you can afford that mortgage payment, I don't think you'll have a problem finding a lender to give you that much because most want you to spend more then your means. This kinda thing happended to my brother in law and he ended up being homeless. He bought a home way above his means because he was working close to 70 hrs a week and depended on the overtime to live a good life. When the OT was done he was SOL. He maxed out most of his credit cards to pay the mortgage. He filed for BK and now lives in a rented house. This is a guy who had A1 credit a 260k house and a BMW SUV in the drive way. He now drives a very used but paid mini-van. Just be careful! Tac
good story tac I think with 30K a year 170K mortgage is WAYYYY too much. I make almost as twice as you and I am looking at around 120-130K Plus, I think 170K mortgage will put you over 40% monthly debt to income ratio doesn't it? You have to count many things into this. For 170K mortgage I would imagine your payment would be somewhere around 2000/month Making 30 grand a year, thats' not even 2.5K per month BEFORE TAXES. You take lets say 500/month for taxes that leaves you with 2K left to manage. So lets say your mortgage is even 1500/month. That leaves you with 500 left. Can you live on 500 month? Food, Gas, Electric, Car Repair, House Maintenance. Unless you plan to eat water for bfast, lunch and dinner, dont' leave your 170K home, don't go out.. then go for it. But remember, something will be always needed around home. Something to think about. Not to bum you off or anything but just think about it.
tac14033 and max, thanx for the advise and being helpful. 30k is what I made last year and 35k this year should be no problem with no overtime and total job security. 30k was a VERY safe number and if the lender would go back and look at past years income 30k would fall into that. Lets say 35k in 2003, and 2004. Now I'm thinking $140's moving about 10-15 miles further with a very steady renter. FICO around 705 at that time, December 2001 will be the 2 year mark for the B.K discharge date. $0 debt at that time with 2 cars already paid off. Right now paying $1005 in rent with no problem. Does this sound realistic on my end or to get an O.K lender? Also does anyone really know if it is 2 years from the file date or 2 years from the discharge date?
What are the Prop Tax's & Insurance in your area Sure 1005 rent is no prob ..but wait till you get your elec, gas,water, trash etc tacked on your 1500 or more mort. payment Plus if it is a new house .. Landscaping ,yard,fencing lawn equipment (all that home depot and lowes stuff) My friend - stay in the LOW 110's .... Homeownership can be Expensive!!!!!!
Hello everyone! Just some info from a Georgian homebuyer. My wife and I are closing on a house in just a few weeks. The house we are getting is $215,000... we are putting down $20,000. We are getting a Combo loan so that we can avoid PMI. Our first mortgage will be for $172,000. Our second mortgage (on which we will close on right after we close on this first mortgage on the same house) will be for $23,000. Including taxes, etc., our payment will be $1338 a month. Our combined income is is the area of $90,000 per year, we have about $40,000 in savings, and our average FICO score is around 730. Now, to respond to some earlier comments... Would I consider this same house if our incomes totalled $30,000? No. Even though it could be affordable, unless I had 6 months to a year of expenses (mortgage, food, car, utilities, etc) I would not take the chance. I would agree with some others, and it seems you new thoughts, to get a less expensive house. I would be concered, as others, of the higher DTI, without sufficient financical reserves. Be careful, after the BK you now have a great chance to start over and develop a great credit profile. Get the more expensive house later, and enjoy a more financially comfortable house now! : ) Good luck in all that you do! Sincerely, Charles
