Hi and welcome to the forum. Congrats on getting your scores to where they are after BK.
Short sales can become a long journey to home ownership. If you are willing to wait 3-6 months for the home, then by all means pursue it. There is a member on this forum that has been waiting almost a year for the bank to accept their offer for the short sale. We found an incredible short sale too but couldn't wait it out.
Our lender told us it would have to be 2 years from discharge to qualify and we filed a 13. Two years is coming up at the end of this month but we already qualify because the 13 was deleted in Oct at the 7 year mark. I do think the lockout period depends on the lender. We are going with an FHA too.
We had to put down $2,000 in earnest money on a new build we are on contract for. I didn't know you could put in an offer without putting down earnest money. If you don't know how much you need for earnest money, I would check with your realtor as it could be more than $1700.
How much is the short sale? You have to put 3.5% down for an FHA. Also what is your total gross income?
I know with 401K, you can only take a loan out for 50% value for a downpayment. So I would check the IRA rules. If you withdraw from your IRA, you will have to pay hefty taxes on the amount pulled so I would take a loan out if possible.
I admit that I think your savings is a bit thin if you take the full amount out for earnest money, your balance will be zero. We are going through a program that puts 3% down into a second mortgage and our earnest money covers the remaining 0.5% for FHA. The builder is paying our closing costs and prepaids. So the loan we are taking out of our 401K is for new furniture and to replenish our savings. I wouldn't close without any savings. Do you have other savings above $1700 elsewhere? You need to have savings elsewhere for emergencies after closing as an emergency could jeopardize your ability to make the mortgage payment.
Short sales can become a long journey to home ownership. If you are willing to wait 3-6 months for the home, then by all means pursue it. There is a member on this forum that has been waiting almost a year for the bank to accept their offer for the short sale. We found an incredible short sale too but couldn't wait it out.
Our lender told us it would have to be 2 years from discharge to qualify and we filed a 13. Two years is coming up at the end of this month but we already qualify because the 13 was deleted in Oct at the 7 year mark. I do think the lockout period depends on the lender. We are going with an FHA too.
We had to put down $2,000 in earnest money on a new build we are on contract for. I didn't know you could put in an offer without putting down earnest money. If you don't know how much you need for earnest money, I would check with your realtor as it could be more than $1700.
How much is the short sale? You have to put 3.5% down for an FHA. Also what is your total gross income?
I know with 401K, you can only take a loan out for 50% value for a downpayment. So I would check the IRA rules. If you withdraw from your IRA, you will have to pay hefty taxes on the amount pulled so I would take a loan out if possible.
I admit that I think your savings is a bit thin if you take the full amount out for earnest money, your balance will be zero. We are going through a program that puts 3% down into a second mortgage and our earnest money covers the remaining 0.5% for FHA. The builder is paying our closing costs and prepaids. So the loan we are taking out of our 401K is for new furniture and to replenish our savings. I wouldn't close without any savings. Do you have other savings above $1700 elsewhere? You need to have savings elsewhere for emergencies after closing as an emergency could jeopardize your ability to make the mortgage payment.
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That sounds good. In the meantime while you are waiting, I would work hard to replenish your savings. I feel very uneasy and like I have no money without savings. Savings is so very very important.
I'm assuming the $9600 is for downpayment, closing costs, and prepaids. Our closing costs and prepaids are $8,000 and the downpayment is $12,250. We have an extra $10,000 on the way for moving, furniture, and savings only.
Our earnest money cleared yesterday and we are on contract and in the underwriting process. So on our way. Good luck!
I'm assuming the $9600 is for downpayment, closing costs, and prepaids. Our closing costs and prepaids are $8,000 and the downpayment is $12,250. We have an extra $10,000 on the way for moving, furniture, and savings only.
Our earnest money cleared yesterday and we are on contract and in the underwriting process. So on our way. Good luck!
Yay so excited for you! I pray it goes amazing and smoothly, and that you have more then enough money! That you don't have any stress and that your blown away by the way it all goes!
We are actually asking the bank to pay our closing costs, so we only need a downpayment which leaves us a few thousand left over for his IRA or other unforseen expenses, and yes I'm saving every penny. I'm self employed (my husband has above full time job) and so my business gets large amounts of money randomly throughout the year, and right now I'm getting ready to head into my peak season.. so I'm hoping to get a few thousand more in our savings by the end of the month! I'll let you know how ours goes! Keep me updated on yours!
That you don't have any stress and that your blown away by the way it all goes!We are actually asking the bank to pay our closing costs, so we only need a downpayment which leaves us a few thousand left over for his IRA or other unforseen expenses, and yes I'm saving every penny. I'm self employed (my husband has above full time job) and so my business gets large amounts of money randomly throughout the year, and right now I'm getting ready to head into my peak season.. so I'm hoping to get a few thousand more in our savings by the end of the month! I'll let you know how ours goes! Keep me updated on yours!
