@Scupra wrote:
@pipeguy wrote:
@Scupra wrote:
@pipeguy wrote:
@Anonymous wrote:
@pipeguy wrote:
@Anonymous wrote:
Orignally, I filed bankruptcy to apply for a new home. Now that I am 1 year into discharge I am wondering if I should start a business or buy my first home with my rebuilt credit??. I have been workings on my husband and my credit since my bankruptcy. We are currently renting. Also, for the business i was thinking a feanchise. Your thoughts on it ALL please?
Don't take this wrong, but really? I don't understand the logic or process of a bankruptcy "to buy a home". I'm not dumping on you, I just don't get it.
Maybe I didn't word that correctly. After filing bankruptcy my first goal once I rebuilt my credit was to buy a house...
Ah okay, that makes more sense. After taking a peek at a few of your other posts, having been discharged in November 2015 and currently having 2 low limit starter cards (assuming you did actual close the Credit One), I'd say you have a ways to go. Very good idea to start planning now by working to rebuild your credit and saving money for a down payment and closing costs. While its possible to qualify for a high interest - high risk loan in 2 years, you are better looking forward to maybe 3-4 years and spend that time rebuilding your credit, saving a good chunk of cash and putting away a 4-6 month "reserve fund" once you get in the new home. Owning a home can be a lot more expensive that just paying rent, there is real estate tax, insurance, repairs, basic upkeep, utilities and possibly HOA fees. It's big step, but a worthwhile one if you plan correctly and go in with your eyes wide open understanding that the costs are more than just making a payment each month.
I wish you well in your goal for home ownership !
To be fair you can qualify for an FHA loan after two years, I wouldn't exactly call it high interest or high risk.
I was speaking in general should she qualify at 2 years, but a 1.75% up front "insurance" plus a .85% add on insurance every month is more expensive than say a "rebuilt credit score" and good downpayment for a traditional or perhaps an USDA loan. Based on the informantion provided, I was just suggesting that she property plan for a mortgage, nothing more. I''l leave it at that....
By no means was I trying to argue lol. Just pointing out that at 2 years post discharge someone can obtain an FHA loan. Sure there is UFMIP/MIP but by no means does that make FHA "high interest or high risk". FHA rates are usually very low. I just want ALL the information to be available to readers. If OP can save up enough to go traditional and not have to deal with MIP, that would be an amazing route no doubt about it.
My FHA loan I obtained after BK is at 3.5% and I may have to pay MIP, but I own a home and am more than happy with the rate.
Thank you both for all the information. I really appreciate it. It is good to know it is a light at the end of the tunnel.
