Buying a House

[onmyway]

15 Months out of BK -- FICO mid score is 698 for primary applicant, for co-applicant is 670...

purchase price of the house is $260K...household income is $65K...(not much )

what are the chances?

we prefer 100% financing...(80/20)

[wayne-o]

sorry to be blunt, but that seems a little pricey for your income. While you might get financed, you could easily end back up in the same boat as 15 months ago.

[MTG_BANKER_OH]

15 Months out of BK -- FICO mid score is 698 for primary applicant, for co-applicant is 670...

purchase price of the house is $260K...household income is $65K...(not much )

what are the chances?

we prefer 100% financing...(80/20)

You can do something but you may want to look at a lower priced home, your payments on this home will be around $2500 with PITI in your current situation. That means you would be spending almost 50% of your monthly income on your mortgage payment. You will get better offers 2 years out and you are not far off.

[wrinkleigh]

I agree -- that sounds like a LOT of house for your income. I would look at lower priced oprions. That is a hard payment to swing considering it will be half of your income every month.

[Mortgage Guru]

FHA , I have done 60 back ratios. your scores are fine, 3% down FHa and it can all be a gift.

[SinkingFast]

FHA , I have done 60 back ratios. your scores are fine, 3% down FHa and it can all be a gift.

Folks here aren't saying whether or not it CAN BE DONE, but more to the point of whether it SHOULD BE DONE.

Traditional mortgage lending works on a 33-35% total debt to income ratio. That's principal, interest, taxes, insurance, CC's, auto loans, any debt you owe to any body that's gonna take longer than a few months to repay.

When you get up into 50% for the costs of the home alone, you'll have barely enough money to survive on. Let alone pay a car loan or take care of any house repairs that might come up.

[tradewiz50]

Subprime if you really want to go for that. But, traditionally, you must wait the 2 years after discharge. Unless, you want a FHA loan that would require a hardship letter for why you filed in the first place.

[Minnymouth]

BE REALISTIC about what you can AFFORD payment wise!!!

You do not want to find yourself in the same position again and no outlet this time for many years....

Remember the home is not the only thing your money goes for...... you have property taxes, insurance, groceries, car payments, car insurance, medical bils, clothing, and emergencies.

You don't want to put yourself in a position where you are soooooooo financially strapped that you can't "breath"................. or never even take a vacation......

I'm sure a lot of us would "like" to live better, but financially its not an option!!

Make you a budget, "see" what you can afford comfortably, and try to stick with it.......

USE YOUR 'FRESH START' WISELY!!!

ps..... Many couples base their projected bills and ability to buy a home on the income of only one of the spouses...............thus if anything happened to the other, then the spouse could continue to live there.....based on their own income...
Not a bad thought to keep in mind.....

[score_recovery]

house

If you are like me, you really want a home. I'll be making 47500 come August, but I am even weary of a $100 thousand loan. I don't want more house than I can afford. Keep in mind...maintenace, taxes, etc. associated with owning a home. What about that unexpected heat pump break down that might cost 4500 to replace? Or that summer air condition bill that was unexpected that could set you back?

Yes, I am aware that many of us want things--that we get all excited at the prospects without thinking about the consequences.

We have a new start and we should do it right. Hope you find a nice home where you can still live comfortable.

[emoney]

I can only answer on what I would do and that is to save until you have 20% or more in a downpayment. Then you own the house and not the other way around.
regards,
emoney