Help! Purchasing a house

[wendichris]

I thought I would come to the experts for help here. My husband and I are 15 months out of bankruptcy and are looking to trade up into a bigger house. With the sale of our home, we would have about 12,000 to put on a down payment for a new place. We are looking at houses priced around 130,000. I know that it is best to wait 2 years out of bankruptcy, but we are having a baby and we are severely short on space. Our FICO scores are around 650 and seem to go up a bit every month.

So here's where I need your help...I'm not sure where to start here. I'm wondering if we can get a new mortgage and if so what the rates would be like. Where should I start in trying to obtain funding.What are the best resources to utilize. Also, my mother has stated that she would be willing to cosign with us, but I really don't want to go that route if it can all be avoided!

Any help or advice that you could give me would be most appreciated! I feel pretty lost in the maze of mortgage lending after bankruptcy :-)

Thanks so much in advance for any and all help!

Wendi

[MTG_BANKER_OH]

I thought I would come to the experts for help here. My husband and I are 15 months out of bankruptcy and are looking to trade up into a bigger house. With the sale of our home, we would have about 12,000 to put on a down payment for a new place. We are looking at houses priced around 130,000. I know that it is best to wait 2 years out of bankruptcy, but we are having a baby and we are severely short on space. Our FICO scores are around 650 and seem to go up a bit every month.

So here's where I need your help...I'm not sure where to start here. I'm wondering if we can get a new mortgage and if so what the rates would be like. Where should I start in trying to obtain funding.What are the best resources to utilize. Also, my mother has stated that she would be willing to cosign with us, but I really don't want to go that route if it can all be avoided!

Any help or advice that you could give me would be most appreciated! I feel pretty lost in the maze of mortgage lending after bankruptcy :-)

Thanks so much in advance for any and all help!

Wendi

You should be able to do something with 5%-10% down, you will probably be in the upper 7's - 9's on a 30 year fixed. About 3 months ago this was an easy deal to get a decent rate but since the market for these loans has dried up lately, the rates are not very good currently. I feel it should come back in the near future. You will probably not be able to use a cosigner on your loan either way, most lenders will not accept cosigners usually only FHA and Freddie Mac laons with 10% down. Besides that I only know of one subprime lender that will allow a cosigner and their rates are not very good.

[chucko]

You're insane. You only have 9 months to go until you are 2 years out and can qualify for some of the better programs out there. I think you're financially stupid for not waiting it out and getting the best deal you can in a few months. You can absolutely make due with a baby in a small place for less than a year to make a good financial decision.

[wendichris]

Nick, thanks for the advice! We sat down and talked about it and have decided to just wait it out until next March. It's amazing how much the market has changed, since I looked at this a couple of months ago! I think we will probably go FHA next year. Plus, waiting a year will give us a chance to fatten up our down payment even more and do some updating to our current house to get more money (which is always a plus :-)).

Chucko, we had made the decision to wait before I came back and read your response. I agree with your advice and we have decided to wait. What I don't appreciate is your tone. You do not have to be rude to get your point across. As for my sanity, I am a woman who is 8 months pregnant...sanity is not high up on my list of admirable qualities here lately.

-Wendi

[tay666]

As for my sanity, I am a woman who is 8 months pregnant...sanity is not high up on my list of admirable qualities here lately.

-Wendi

Oh yes.
I remember those days.
It was over 16 years ago, and I still remember vividly what my wife was like during her pregnancy.

[invest1choice]

Bankrate says the mortgage loans for bk credit is going to get worse.. before it gets better no telling what the rates will be in 9 months