Mortgage approval ...

Anonymous · ‎04-21-2010

I really need some encouraging words... I am pre-approved for $180 (Wellsfargo) and approved for for $7500 D/P NJ assistance. I have about $12k available to liquidate from my 401k ( I know it is not a good idea, but I wanted to have my first house- 2 kids) anyway house inspection will be tomorrow.....Say it passed inspections,, by the way it is a short sale that we put an offer for the full price of $175k in Jan and hope that short sale will be approved soon (Wellsfargo). My income is 44607/yr and have $225 car loan payment , personal loan of $96 and c/c payment approx $100. My concern is BK was discharged in Sept 2007 and never late since then.. All the information that I provided when I took the first step to get pre-approval hasn't changed, do you think i have a chance to get through the underwriter and be approved for the mortgage??. I am really very scared right now... any insights is greatly appreciated.

Lel · ‎04-21-2010

Is this for a conventional or FHA loan?

Anonymous · ‎04-21-2010

thanks fo responding , It is for FHA Loan.

Anonymous · ‎04-22-2010

Anyone.. please.

Lel · ‎04-22-2010

How are your scores?

The BK could be a sticking point, but your otherwise good credit history since then should work in your favor. Even though you're beyond the minimum waiting period after Chapter 7 discharge, some FHA lenders are using stricter qualifying criteria. I believe some people here have been told that they had to wait 3 years after discharge. If this current lender balks, then you may still be able to find another lender who will offer you a loan.

Anonymous · ‎04-22-2010

I know we were told we had to wait three years for FHA loan from our discharge date. . Don't give up just yet you won't know unless you try. Good luck!!

Anonymous · ‎04-22-2010

DTi is going to be an issue here, unless taxes are really low in your area. Assuming you finance 160K using the down payments listed (saving 5K for expenses, closing costs, etc...) then you have a mortgage/interest payment of around 925 or so. With your other debt that only leaves you about 175 for taxes, property insurance, PMI, and any home owners dues that may be there. PMI will be 75-100, so you have about 100 per month for taxes and home owners insurance. I do not see a lender allowing high DTI exceptions (beyond a minimal percentage) with a BK that recent (but it is possible). Most lenders are looking for 29/41% DTi (mortgage debt/total debt) Your income allows for about 1500 total debt and 1100 mortgage debt (payment, interest, insurance, PMI, taxes, HOA) so you would likely need a waiver for both mortgage DTI and total DTI.

Also, most lenders are requiring 3 years for FHA.

Best bet... Wait until the BK is 3 years old. I wish you louck and hope it goes through for you, but it will be a tough one in underwriting.

Anonymous · ‎04-25-2010

thanks so much mickie08, I am thankful for you input. Is it possible, my daughter has permanent part time job but paid in cash every week for at least 200/wk and worked for almost 2 years. Can we add this as additional income for my $3716/mo.

Anonymous · ‎04-25-2010

the taxes is 3999/yr

Jazzzy · ‎04-25-2010

@Anonymous wrote:
thanks so much mickie08, I am thankful for you input. Is it possible, my daughter has permanent part time job but paid in cash every week for at least 200/wk and worked for almost 2 years. Can we add this as additional income for my $3716/mo.

How old is your daughter? Is this income on her taxes? I think she would have to be on the loan with you. Does she have good credit?