Loan GUYS?!? What's the best way to go about this?

[Anonymous]

What's the best mortgage recipe for an approval down the road?  Want to relocate by  June (2010).

I am a stay at home parent with little income, Cap one ($1000CL), HSBC ($300CL),Target ($500CL)  Kay (new, never used $6500CL) and JCP (new$600CL)  OK scores, getting much better....650 and 641, respectively...

Husband- filed BK 2008/DC in May 2008, Cap one ($1250CL), Kay (new, never used $550CL) steady job/big income- low scores.....597 and 608, respectively...

We both got Kay and JCP (me) in the last two days so it's not reporting yet.  Also a few inquiries are dropping off my report as well this month, don't know if that matters. Also, would it help to put DH on my cards as an AU to bump his scores?

We (only in DH name, I have been a stay at home parent and had neglected my own credit in the past--changing that positively over the past 5 yrs) have owned two homes prior to his BK, paid off both and a second mortgage....have had 4 lates over two loans/two homes in 8 yrs. 

Since we have not owned a home since 2007, in march of 2010, we should qualify under the "first time homebuyer" qualification....

What would we be approved for or what should we be shooting for as far as a loan goes?  Scores?  What to expect.  We know a few things will be haunting us for a while, we want to be as well prepared as we can be, though.

Really trying to be proactive and positive, but it's hard with our situation.....

Message Edited by familyof5 on 06-19-2009 01:30 PM

Message Edited by familyof5 on 06-19-2009 01:45 PM

[DallasLoanGuy]

scores will need to be over 620.... and maybe 640 or 660 by then, rumor has it.

save money for down payment.... if you arent saving money after a bk it doesnt look good.

make sure all accounts included in bk are reporting correctly

[DallasLoanGuy]

oh. yes, 3yrs is the mark for fthb

[Anonymous]

With the exceptiom of very few programs out there, Mar of 2010 will be too early for your husband to be listed on a mortgage due to the discharge date.  2 years is the magic number for most lenders to even begin to consider you - that's post discharge, not the file date.  Shooting for a May app/late June/July move is probably fairly realistic.  Save for the DP and keep your CC utilization under 10% the entire time, both scores will climb as long as util stays low and no lates are reported.

[Anonymous]

Also, has the FTHB been extended?  I though that it was over in December

[Anonymous]

FYI- We sold our last home in March of 2007, So we have not technically owned a home since 2007.  He didin't file BK until Jan 08/DC May 08......

What makes the most difference when qualifying for a FTHB:  That he filed for BK in 2008 (and it hasn't been 3 yrs) or that we haven't owned since 2007 (will be 3 yrs come March 31, 2010) ?

We have just under 6K (not alot, I know) in a savings account that we do not touch for Down Payment.....my mother is also gifting us 5-7K  for additional down payment help.....will that help?  or are we talking upwards of 20-30K to put down?  We are looking into FL and a max price for a home of 170K.....

Thanks

Advice? Thoughts?

Message Edited by familyof5 on 06-22-2009 01:25 PM

[Anonymous]

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@Anonymous wrote:

What makes the most difference when qualifying for a FTHB:  That he filed for BK in 2008 (and it hasn't been 3 yrs) or that we haven't owned since 2007 (will be 3 yrs come March 31, 2010) ?

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It depends which first time home buyer program you are looking at.  As Mickie mentioned, the first time home buyer's tax credit, the $8000, is no longer available after December 1st 2009.  I did see Florida offers some kind of program.  Not sure on the details, you'd probably have to contact them.

If you go FHA, you'd only need to put down 3.5%, so your $6000 would cover the down payment on a $170k home.  Then you just need to think about closing costs if you aren't able to get the seller to cover them.  Good luck!