Is this possible for us?? If so, will we get a fairly good loan?? We're moving soon and don't really want to waste our hard earned money on another persons mortgage....So this is our situation: Boyfriend filed for chp 13 bankruptcy 4 years ago (1 year left, yay). He kept a good portion of his credit cards after filing. He has never been late on payments since filing. His debt ratio is pretty low. His FICO score is 643. He's also established at his job, he's been there for 9-10 years. I am slowly building my credit. I have a auto loan I've taken out on my own. I have a couple of credit cards and I'm good about paying off my cards in full shortly after charging on them, always on time. I have some student loans that I also pay on. My FICO score is 675. I know this is probably way to much info, just wanted to make sure you have the full story. Please, if anybody has any input, it would be much appreciated. We'd love to go speak to a loan agent, but want to go in knowing what we're up against.
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Being that the average credit score is 678 chances are good that'll you guys will be able to qualify for a mortage. But it could all very well depend on the time of loan and financing you guys can qualify for. Whether or not you'll be able to get 100% financing depends. Just contact a few mortgage specialist and see what kind of information they provide you with.The information provided is not, and should not be considered legal advice. All information provided is only informational and should be verified by a law practioner whenever possible. When confronted with legal issues contact an experienced attorney in your state who specializes in the area of law most directly called into question by your particular situation. -
All you can do is call around, but honestly, 100% LTV (loan to value) on a house with sub 700 credit scores is probably not very realistic. But I suppose anything is possible. It will probably come down to your combined incomes...and what payment you can afford, and the real estate market. Also, most places will want you to at least come out of pocket for the closing costs which are usually several thousand dollars.
In addition, if you get a single loan that is 100% loan to value, you will have to pay PMI (mortgage insurance) which will add a hundred or more dollars to your payment.
You will want to discuss with your broker doing and 80-20, whereby your primary loan is 80% LTV (and thus you avoid having to pay PMI), and then have a second mortgage that is 20% LTV. The first mortgage is usually a conventional 30 year mortage, the 2nd mortgage is typically something different, and always with a slightly higher interest rate.
Good luck, let us know if you are able to do it.Comment
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Thank you both so much... I knew it was going to come down to calling and shopping around, which is fine. Like I mentioned, I wanted to know if we are looking at an uphill battle or something in a realistic reach. My boyfriend has this preconceived notion that since he has the bankruptcy on his record he will just get the door slammed in his face. I know we can handle a monthly mortgage (combined monthly income is around 8k), it's just looking for that loan company that is willing to with us without taking total advantage of us just because of the bankruptcy. I hear of all these people who get taken for on their loan, it's pretty scary.
Another question... we are going to be moving about 7 hrs from where we are now. So, should we try and lock in a loan before moving & him looking for a new job (i know they look for at least 2 yrs at a job), or if we decide to wait a while after moving, will they take into consideration that we are moving from out of town and it would be impossible him to stay at his current employer? Does that make any sense???Comment
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