Want to buy a house...Question/HELP!!

[crazydebt]

Hello everyone. Well I am wanting to buy a house soon, probably within the year or so. I live in California so its a bit high. Here are some details:

File BK and discharged in 05/02 (so I have been out nearly 5 years)
I make about 65k a year. Single.
I have about 10k that I am going to put down.
I am thinking of taking out another 10k from my 401k (with no tax because of first time home buying)

So that is 20k of down payment.
My credit score is roughly 650 or so. I have a car payment, cc payment, etc that total around 1000.

The house value that I am looking at is 250-275k. What are my chances of getting a mortage? what kind of numbers are we talking about here for mortage? what type of loan? I was looking at the FHA and I do qualify for that. Well let me know what you guys think. Oh, I am paying roughly 700 in rent at the moment for a 1 bed apt. Thanks.

[MTG_BANKER_OH]

Hello everyone. Well I am wanting to buy a house soon, probably within the year or so. I live in California so its a bit high. Here are some details:

File BK and discharged in 05/02 (so I have been out nearly 5 years)
I make about 65k a year. Single.
I have about 10k that I am going to put down.
I am thinking of taking out another 10k from my 401k (with no tax because of first time home buying)

So that is 20k of down payment.
My credit score is roughly 650 or so. I have a car payment, cc payment, etc that total around 1000.

The house value that I am looking at is 250-275k. What are my chances of getting a mortage? what kind of numbers are we talking about here for mortage? what type of loan? I was looking at the FHA and I do qualify for that. Well let me know what you guys think. Oh, I am paying roughly 700 in rent at the moment for a 1 bed apt. Thanks.

You should bo ok to buy a home, you the bankruptcy should not hurt you since it is over 2 years out. You may want to look at your credit and see where you can make improvements to get your scores up programs get better over 680 and then 700 and 720. If you have a high utilization on a credit card you should try and pay it down to less then 30% of the limit and see where that gets you. With an FHA loan you should have ratios of around 31% (this would be $1679 for PITI) on your housing ratio and 45% on your overall debt ratio to qualify. You can definitley get into a home with higher ratios FHA but that is up to the underwriting system that banks and brokers use. Another program you may want to look at is a my community loan it will allow for 100% financing 2 years out of Bk and has reduced mortgage insurance like FHA without the upfront mortgage insurance that FHA has. If you are putting money down you are best off doing so in 5% increments because it does not open up any other programs with less then a 5% increment except lower your payment a little bit.

[crazydebt]

You should bo ok to buy a home, you the bankruptcy should not hurt you since it is over 2 years out. You may want to look at your credit and see where you can make improvements to get your scores up programs get better over 680 and then 700 and 720. If you have a high utilization on a credit card you should try and pay it down to less then 30% of the limit and see where that gets you. With an FHA loan you should have ratios of around 31% (this would be $1679 for PITI) on your housing ratio and 45% on your overall debt ratio to qualify. You can definitley get into a home with higher ratios FHA but that is up to the underwriting system that banks and brokers use. Another program you may want to look at is a my community loan it will allow for 100% financing 2 years out of Bk and has reduced mortgage insurance like FHA without the upfront mortgage insurance that FHA has. If you are putting money down you are best off doing so in 5% increments because it does not open up any other programs with less then a 5% increment except lower your payment a little bit.

Thank for your response. What is PITI? So you are saying only put down 5 percent of the cost of the house? and then later on put another 5 percent down and so forth?

Yeah my goal for the following month will be to pay down all my CC down to 20 percent. That should boost my score up pretty good. Can you tell me more about "Community loan". Thanks again for your help and advise.

[SinkingFast]

Thank for your response. What is PITI? So you are saying only put down 5 percent of the cost of the house? and then later on put another 5 percent down and so forth?

PITI = Principal, Interest, Taxes, and Insurance.

Mortgage Banker meant, there's no difference in rates and fees between a 5% down payment and an 8% down payment. The interest rate will be the same. Private Mortgage insurance might also be the same.

The only difference will be a few $$$'s/mo/$1000 of down payment you kick in.

Make your down payment in 5% increments. 5%, 10%, 15%, 20%, and so on.