I was wondering when would be a good time to look around for a mortgage. Here is some information. My 2 year discharge will be in 6 months, FICO around 705 next month. $30k income, $0 debt, no car payments, no kids now or in the future, and 9 good accounts established since the B.K. Should I look for a mortgage only in my name or add on Girlfriend of 11 years. Her situation $18k income, $0 debt, no car payments, no kids, and 2 good accounts established since the B.K in 8-2002. Her FICO is mid 600's right now and climbing too. Would it be bad to include her after my 2 years are up, but her only being 7 months past the discharge right now? 30k by myself, 48k with her. Looking at around 150k. Job me 5.5 years, her 2.5 years. Lease up 11-1-03 can go monthly after. Programs? Rates? More info? Does she hurt or help?
That you've brought your scores up so high in only 18 months is truly astonishing. Congratulations! Unfortunately, in mortgages the bankruptcy is going to be the driving force behind what you qualify for until the full two years is up. The exception to that rule is FHA, where you can qualify (sometimes) after only 12 months if you can show that the bankruptcy was something beyond your control. That usually means medical. After the two years then you qualify for the same loans everyone else does on the conforming FNMA programs as well as FHA/VA, but you still take hits on the ALT-A programs (non-conforming loans for people with good credit). Secondary borrower with bankruptcy? You know, this doesn't come up much, I'm going to have to check on this. Usually when both borrowers filed bankruptcy, it's the same bankruptcy filed joint. When I get to work tomorrow I'll look through my underwriting manuals and see if I can't get an answer for you.
That would be great I know it is a weird situation, one filed waiting for the 2 year and one filed to far from the two year. I don't know if she would hurt or help but I would like her income as help! I did alot of searches here and I am in a unique situation. THANK YOU! The FICO scores are real, lots of rebuilding. Any other input would be great, thank you Mycroft!!!
Mycroft, Have you had any luck going through your underwriting manuals on this one yet? I would really appreciate it. If not thats o.k to.
Re: Re: Mortgage ? 4 Mycroft or anyone else Yes, but I didn't get the answer you were looking for. With the exception I noted previously, she won't be able to help you get a conforming loan until her bankruptcy is also two years old. The good news is that once you hit that two year mark, you should be able to qualify on your own. $150k is a lot to buy on $30k income, but there are ways of making it work. If you don't have any money saved, now would be a good time to start.
Re: Re: Mortgage ? 4 Mycroft or anyone else Thank you Mycroft, $30k for $150k is that even doable with 5% down + all other costs? Her 18k income would help qualify in that but oh well. I don't really care about the interest rate right now. So does it sound like I should include her or do it on my own at the 2 year mark? At least her 18k is real money for the payments. $48k for $150k or $30k for $150k?
Re: Re: Re: Mortgage ? 4 Mycroft or anyone else Yeah, your biggest issue is going to be debt-to-income, but if you have no debt then your $30k translates to a monthly income of $2500, of which 38% or $950 can be your monthly payment. If you use an 80/15/5 combo and buy your rate down a little, you can work it so you have P&I payments of about $750, leaving you $200 for taxes and insurance. Now I have no idea what your taxes and insurance are going to be, but I do have one customer with less than perfect credit who just insured his $165,000 home for an even $600 per year. If your insurance costs are the same, that would leave you $1800 per year for taxes. Do you know what property taxes are in your area? If for whatever reason that doesn't work out, you can go sub-prime with a rate in the low to mid 7's, but an allowable DTI of up to 55%. This would mean that your $2500 income qualifies you for a monthly payment of up to $1375. Your P&I payment would be about a grand, leaving you the remaining $375 for taxes and insurance.
Re: Re: Re: Mortgage ? 4 Mycroft or anyone else $1100-$1600 a year crossing a county line would bring that down which is an area that I am looking at. I would really pay in the sevens on interest thats no big deal right now. No debt on either side, is this looking like I should do this on my own? I know the ideal thing is to wait until she hits the 2 year but I can not wait anymore. Hopefully rates would stay low the next couple of years to refinance with her on it. We are as good as married lived with her over 10 years. Down payment roughly?80/15/5 combo? Thank you for responding to me!!! Oh yea no debt either side, well a couple hundred keeping accounts active but thats it.
Re: Re: Re: Re: Mortgage ? 4 Mycroft or anyone else Anybody's guess. Didn't you say 5%? Dont forget expenses, a years insurance in advance, two months taxes and insurance for the escrow account. Try to get your seller to pay closing costs. 80/15/5 means a first mortgage for 80% of the purchase, a second mortgage for 15%, and a down payment of 5%. It's a strategy to avoid mortgage insurance. You're welcome. I hope you get your house.
Re: Re: Re: Re: Mortgage ? 4 Mycroft or anyone else You are the man and thank you. So in this unique situation I should do this on my own without the woman 18k income? I know about mortgage interest rates and the current economy. I.O.U and have your back on this site! The 5% + costs are already figured in thank you for bringing that up!
