would like to sell current home and use equity for down payment and closing costs on new home. We are considering selling our current home first, and then renting an apartment or house while we look for our new home. Will the mortgage companies look at our short time in an apartment as a negative or will they understand that our residence history is stable? Or doesn't length of time at residence really factor in? We will be subprime and suspect that it could take 6 to 9 months to sell our current home which is why we don't want to do the traditional "buy and sell at the same time" approach. Also, any leads on a good mortgage broker in NC.
LLee Firstly, welcome to the board. Selling your current residence and then moving into an apartment normally will not be too much of a negative, though it may not really be necessary. There are other options that are available for you. Why do you consider yourself to be sub-prime and why do you say it will take 6 to 9 months to sell your current residence? What part of NC are you in? fla-tan
reason for subprime is chapt. 13 bk to be discharged in a few months. FICO is around 580-600. Have been able to obtain new car loan and one secured credit card through AP bank since filing in effort to reestablish positive credit. Will not be getting any additional credit other than new mortgage when we sell our current home. Excellent income and debt to income ratio and perfect pay history to trustee. Home sales ave. 3 to 6 month turnaround time in our neighborhood( Mecklenburg County). Thought we could use this time and the time in an apt. to clean up credit reports (make sure all debt discharged is properly reflected)and let our new credit get some age. Just seems less stressful then having a purchase contract on new home contingent upon selling our current one. sorry for such a long message. open to any advise or suggestions.
Don't worry about renting an appartment between homes. That's common, it's just not possible for everyone to set up their deals so they always have a home to move to when they sell their old one. You might not be as sub-prime as you think. FHA will sometimes make exceptions to their bankruptcy rules. I forget the criteria (it doesn't come up very often) but I can look it up. The fact that your payments to the trustee have been perfect counts a lot in your favor. Honestly, that's not very common. I can't recomend anyone in NC. Living there doesn't help, they have some stiff consumer protection laws that make it really hard for people with issues to get financing.
Re: Re: help with mortgage question LLee You may very well qualify FHA. As long as you have been in the payment program for at least (Ibelieve) one year and can get the trustee to approve it, you should be able to qualify FHA. He/She will also have to approve the sale of your existing home as well. If you are able to put 20% down, then normally there will be no PMI either. Are you in Charlotte itself, or another part of Mecklenburg County? There are several other more specific questions that I would need answered before saying difinitively yes, that you would qualify FHA. If you want, please email me and I can go into more detail with you. fla-tan
