Mortgage Question

[vtguy25]

I know that right after discharge it is very important about rebuilding and I am planning on doing this as soon as I get my discharge papers.  My question though does anyone have any experience with getting a mortgage with a co-signer after discharge.  The Mortgage would not be very much at all and co-signer has 800-850 FICO and plenty of income to support the payment.  Just looking for anyone that has any experience with this.  I know that you should never use a co-signer but that looks like it could be the best option for me at this point.  Thanks in advance!!

[SoulMaster]

AFAIK, it can't be done.  I'm glad you know it shouldn't be done.  If you have 20-30% to put down, you don't need a co-signer, though.

Here's an alternative solution:  Have the Co-signer buy the property out-right and set you up in a 5 year lease-option to buy, where you pay exactly the same rent as what the mortgage payment (PITI) would be and are responsible for ALL home maintenence/HOA/fees and carry your own insurance.

Set it up so that you can exercise the option (buy the house) for the mortgage balance in months 24-60.  This will give you 3 full years to find a mortgage. (Theoretically, you can get an FHA morgage 2 years post BK, if no house was included).

In the worst case scenario the buyer can kick you out and sell the thing (or find another renter).  In the best case scenario, you get the house at CMV, benefit from your would-have-been cosigners credit profile, you just have to pay 2-5 years-from-now's interest rates when you eventually take over the property.

This really is the best option for both of you.

Good luck,

-SM

[SoulMaster]

Alternatively, go rent a house (which will be cheaper than a housepayment) for 2 years while you do your rebuild, then go buy your own house.

If a house was included in the BK, you absolutley cannot buy anything until 3 years post the title transfer, so if your plan is to leave a house, get it short-sold or sold ASAP.

-SM

[vtguy25]

Thank-you, I didn't think that it would be able to be done....  There is already an exsiting home on the property which is mine to have if i want it so it looks like I will be fixing it up and not replacing it.  And in 2-5 years I will look into building something new which will prob be a lot better for me in the long run because I will have much more money saved then.  Thanks again for your advice.  Also I had no home included in my BK it was all unsecured except a car that was repoed before I filed. 

[SoulMaster]

I'm confused.  There's an existing home you can live in for 2-5 years w/o getting a mortgage?  If that's true, then heck yeah!  Fix that sucker and hoard the cash!

-SM

[vtguy25]

Yes there is a mobile home that is on a family members land and it needs work but it is mine for the taking and I can live there rent and mortgage free and just pay my utilities and water/sewer.  Looks like that is going to be my best bet and save what I would be paying for a mortgage every month and should beable to have a 20% down payment and a 700 FICO when it is time to get something new!! Hopefully I will own the land by then also so I will beable to use my equity and cash to build a new house.  Thanks again SM

[SoulMaster]

Boy, I wish I could live rent free! /me=a bit envious.  Hahaha!

Good luck and you're welcome!

-SM