Need an example of a out of BK loan...

[moneytree]

One of the many 'creative' lenders should be calling us back soon. We are inquiring on mortgage for $255K. Closing costs not included, but builder would pay the difference after $4950, because he wants the sale of the house to look like $259,950. So figure a mortgage for $260K then. As well as $246,761 (not including closing costs) on another home. How much will $8,000 in a loan save us per month? It might be 1 house or the other. Depending on the loan offers.

I feel like I have nothing to compare it to. I know you'll just love doing this, but give me the BEST case scenario LOAN on 100% financing right out of BK. The only secured debt we have is 2 car payments, totaling $735 per month. We can afford up to $2200/mo.

I've been told to get Good Faith Estimates and to even contact a lender who used to work for a trustee? The only reason why we are considering this is the house appraises at $290, but the price has dropped $35K for quick closing. Too much inventory sitting around for builders right now. We are prepared to refinance in 2 yrs. and understanding that we may be refinancing our $259K home at close to $300K? Is that correct?

My parents were offered an ARM loan, but ended up going w/ our builder and he accepts VA loans, so now they have a 8.75% fixed (I believe). How is that deal? Their debt to income ratio is high. They have $40K in credit card debt, and once again plan to consolidate. Should they eventually file a ch.13? Not sure if my father would ever do that, but they are in debt big time w/ the unsecured lenders. Just wondering what you think of their scenario.

Thanks!

[HHM]

Since I am not in the mortgage biz, I will not hazard a guess as to what specific terms you may or may not get. However, with you just being out of BK, I wouldn't expect your deal to be any better than your parents deal, which isn't that great.

On a side note, I really think you are probably getting in over your head, and that you have emotionally committed to buying a house when the cold reality is, you probably can't afford it. You're doing a 100% LTV in a general real estate market that is not appreciating; thus, you will have very little if no opportunity to refinance to a better deal in a few years.

Maybe the real estate market your in is an exception, but right now, appraisals mean little. The value of the home is what someone is willing to pay for it, and guess what, your builder isn't giving incentives because he has people knocking down his door to buy his houses. Also think of this, why does the builder want to show a higher sale price (guess what that does, it skews the COMP's). Hence, I am fairly skeptical about the $290 appraisal, since these are new homes, if the builder could really get $290 for the house, don't you think he would...and even more skeptical that you will have 15.4% appreciation in 2 years (based on your $260 purchase price).

Just some food for thought.

[MTG_BANKER_OH]

One of the many 'creative' lenders should be calling us back soon. We are inquiring on mortgage for $255K. Closing costs not included, but builder would pay the difference after $4950, because he wants the sale of the house to look like $259,950. So figure a mortgage for $260K then. As well as $246,761 (not including closing costs) on another home. How much will $8,000 in a loan save us per month? It might be 1 house or the other. Depending on the loan offers.

I feel like I have nothing to compare it to. I know you'll just love doing this, but give me the BEST case scenario LOAN on 100% financing right out of BK. The only secured debt we have is 2 car payments, totaling $735 per month. We can afford up to $2200/mo.

I've been told to get Good Faith Estimates and to even contact a lender who used to work for a trustee? The only reason why we are considering this is the house appraises at $290, but the price has dropped $35K for quick closing. Too much inventory sitting around for builders right now. We are prepared to refinance in 2 yrs. and understanding that we may be refinancing our $259K home at close to $300K? Is that correct?

My parents were offered an ARM loan, but ended up going w/ our builder and he accepts VA loans, so now they have a 8.75% fixed (I believe). How is that deal? Their debt to income ratio is high. They have $40K in credit card debt, and once again plan to consolidate. Should they eventually file a ch.13? Not sure if my father would ever do that, but they are in debt big time w/ the unsecured lenders. Just wondering what you think of their scenario.

Thanks!

One thing we will need to know is what are your credit scores currently? The higher the lower rate you will get. You have to be careful if the builder is selling homes at a lower price now 30k less then what they were selling for a year ago. If enough homes sell at the lower amount the price you bought the home for is now what the homes are worth. If your home is worth $290 in a few years then you would be using the $290 as your value and you loan would based upon the equity that you have between your new loan amount compared to the appraised value. If you refinance and your new loan amount is $260k and your value is $290k then you ahve $30k equity. It is hard to tell about your parents loan whether they have gotten a good deal or not we would need more information.

[invest1choice]

Two years ago we were told everything under the sun to close we did 100% finacing and now our two year arm is up and our mortgage kepps going up every six months plus it jumped the first time from 7.5 to 10.5 and in may it will go up to 13.5 . I was told just refiance but the reality is if I do I dig myself more in a hole .Because not much equity has been established past two years. Now we are selling beacuse we cannnot afford it plus I am told waiting 2 years out of bk will help.. I just wanted to tell you to make sure you go over everything with a fine tooth comb beacuse once you sign that is it.. if anything stay away from arms adjustable rates... good luck