First of all: CONGRATS! Secondly, would anyone care to share in layman's terms just HOW you managed this? Was there: bad credit? Collection accounts? Liens? on your reports? BK? Judgements? Blank? How much of a down payment? How much cash did you have to save for the closing? How much was the house? I'm dying to get the hell out of rental hell but just can't see the light at the end of the tunnel. Please, do tell just what the heck you did. Did you call a mortgage broker and say, "Hi, my credit is not good, and I have $2k in the bank, what do I need to do to get a house?" I have a feeling that here in NYC if I called a mortgage broker and said the above he'd say, "A miracle," and promptly hang up the telephone.
The main issue with getting a mortgage is that you have everything paid. As long as everything is paid, there is a chance that you can get into a house with very little down payment. Let us know more about you're situation, and we can give you a little more advise on what you need to do to get into a house. Even if you don't have everything paid, you can still get into a house, it just makes things a little tougher.
Hi, Shirley! I did just what you said. I was reading the Bayhouse board and followed a mortgage broker that was posting for some time. He made me feel comfortable and I felt he was knowledgeable and caring because he spent time giving free advice. I emailed him and said this is our situation, what can we do? We had a discussion initially by email and at some point, he asked me to fill out the online form and send him copies of my credit reports. I did that because he said he would not pull an official credit report until he knew there was a reason and I was ready to proceed. So, no inquiry until there was some feeling that he could get us a mortgage. So, I did just that. I had a BK13 filed in 96, Dismissed (not discharged, mind you) in 99. I had 2 accounts showing as part of the BK13 and 1 paid collection, 1 unpaid collection (which I paid near closing, it wasn't mine but it was removed (after closing) so I'm happy.). I did have 9-11 positives, 3 years of perfect rent payments, 10 years as a teacher (5 as a sub) so they counted it as 15 years in the same profession, and my income was sufficient but I was changing states so changing school districts. Since I was in the same profession, it counted as consecutive. After reviewing my reports, he called and we had a long talk about what could happen best and worst scenario. He felt we could try FHA and so we did. I ended up with 3% down, 7.75% interest FHA with truly little problems. I then filled out an official loan app, provided 2 payroll check stubs, the name of our landlord, any investments (whoohoo, I had only a small school thingy), and my retirement info/savings. I also provided my checking account statements for 2 months and proof of funding for the down payment. Looking back, it was pretty painless. And, I loved my broker and wouldn't hesitate to recommend him to anyone at all!! Hope this helps...best of luck!
I got a house less than 1.5 years after Chapter 7 BK. I had all my debts paid off (not that I had many so soon after BK). The figures....(approx) House appraised for 164,000. I paid 160,000. I had to put 5k Down. Financed 155,800.00. Closing costs added, needed 8k (total w/DP) at closing. Interest was a little high, 10% at the time, but was a HUGE writeoff at tax time so really wasn't that bad. Plus, I am in the middle of refinancing and will have 'A' paper (7%) less than 2 years later. The key is to get a good mortage broker who does all the work and knows all the 'ins and outs'. Mine had it worked out so that I didn't have to put ANYTHING down (besides closing) if I took a little higher rate. Don't let the rate scare you too much at first, it's a big write-off and you can re-fi in less than two years. Hope this helps! Shawn
My CRs will be free of derogs this December. there's one collection account (Gulf State) that will drop off in December. I just recently got Cap 1 Kmart Mastercard $300 limit) and a Target card ($300) My husband's CR is another story. He has a BK that was discharged in 1993. (What's the difference between dischared and dismissed?) It will be off his reports in 2003. He is also paying the IRS every month for a monster tax bill he had in 1992. It started at him owing $9000 and how it's over $18,000 with the penalties and interest. He had an installment agreement with them for a piddly sum per month and about a year ago the IRS sent us a letter saying they were putting the account in the Uncollectable category but to continue making the piddly payment anyway. He's never missed a payment. This debt will "vanish" in 2003 as the ten year mark will pass, however in '96 the IRS filed a Notice of Tax Lien which appears on his report. He has a Visa with a $1k limit and I have a card too under his account. He also has a retail card (Macy's) with a $1,200 limit. There are a couple of old inactive accounts on his report as well but none of them are showing as a derog or with a balance owed. He has a Closed at the Request of the Consumer on one Visa card. There has NEVER been any late pay or high balance carried on any card he has. He's been at his job for 8 years and I've been at mine for 9 years. Household income total is $50k gross. We've been living in this apartment for four years and have a perfect rental payment history. I have a feeling we're out of luck because of the Notice of Lien filed. Experien's telephone recording says unpaid liens stay on for 15 years. I'm assuming that's 15 years after the lien is released.
Just to add to the above, we're virtually debt free and don't have a car, stocks, property or anything. My husband has an annuity of some kind at his job but is not allowed to borrow against it or touch it until he retires.
My gut instict would tell me that you would be able to get a house, but you will only be able to use you're income to qualify. You probably wouldn't qualify for the houses you want with you're income, but it may be possible to get a no documentation loan, but this would be at a higher interest rate.
Don't give up!!! We finally did it - very frustrating - almost gave up several times - but it worked out in the end
I make about $20k and had a Citibank account years ago that went into collection. That's the one that will fall off in December. Once that falls off, my reports will be blank as far as old credit. I recently got the Kmart and Target cards so they will be on there soon.
The reason I asked is because I got the house on my own credit (we have our own home business and it wasn't established enough to easily use the income for my hubby..we could have if necessary but it wasn't worth the problem)..but when we signed in Texas, it all went into both our names. But, I'm not sure if 20K is enough...that's one for your broker...and I really think that's your next step...he/she will tell you exactly where you stand, and if you need to do some things first, what they are.
