cancel
Showing results for 
Search instead for 
Did you mean: 

On the market for a House and a Mortgage

tag
MYRLORA
Established Member

On the market for a House and a Mortgage

Hi to all…this is my fist post; sorry for the length!

 

I am currently on the market for a home and a mortgage and I am looking for input.

 

Here’s my background and current situation:

 

  • Due to loss of income; I filed for BK-7 on 2/6/09 and was discharged in May of 2009.
  • I have a 5 year old foreclosure on my credit report of an investment property dated on 1/29/09…yes I know; just seven days prior to my BK-7 filingSmiley Sad
  • I am self employed; and started my current company in 2010.
  • Since Bankruptcy, I have re-established my credit
  • My current scores are: Experian-695, Trans Union-716, Equifax-694.
  • My yearly average income for the last two years as documented on my personal tax returns is $170,000 or $14,000/mo, and it is also properly documented on my bank accounts.
  • I have 3 credit cards that I use on a monthly basis but I hardly carry a balance on them so I have no credit card debt.
  • I have two car loans; and both are properly documented as paid by the business.
  • My current resident is in Foreclosure with a sale date of 3/18; however it will be listed as a short sale soon.
  • The mortgage on the current home is NOT in my name, it is under my wife’s name; I’m only in the title.
  • I have $60,000-$75,000 saved for down payment, and properly documented on my bank accounts.

 

Here’s my dilemma:

 

I was originally approved for an FHA loan with 3.5% and Max loan amount of $439,000, but that changed in January to a max loan amount of $345,000. I also could have done a Conventional Loan with 5% with a Max loan amount of $417,000; but due to the foreclosure on my credit report, the down payment required is 20%. The issue is where I live (Broward County, Florida) the properties available with the criteria I’m looking for are in the $450,000-$500,000 range. I don’t have enough for 20% on a Conventional loan and with the FHA loan, although it is only 3.5% down, the maximum loan amount is too low.

 

Any suggestions?

 

Thanks ahead.

Message 1 of 7
6 REPLIES 6
BrianB_The_Loan_Professor
Valued Contributor

Re: On the market for a House and a Mortgage

I see issues for you when it comes to any loan - how do you plan on explaining your current housing? Banks are pretty sharp when it comes to stuff and digging to find info is what they do 

I am fairly confident that the pending foreclosure, even if in your wifes name will kill your chances for financing.

Even in a non community property state an UW is going to see the past history and when they see that the current home is in foreclosure they are going to see you as a very high risk -  Others may see it different ...........

 

 

B

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
Message 2 of 7
ezdriver
Senior Contributor

Re: On the market for a House and a Mortgage

Brian is on to something important. I have had three new construction purchase deals die when the underwriter categorized the transaction as a "buy and bail" transaction. Maybe there is more info that you can share with us so we can bettr understand the scenario and thus respond in more meaningful ways. Did you actually get a lender to approve a purchase mortgage for you with the foreclosure?

Message 3 of 7
DallasLoanGuy
Super Contributor

Re: On the market for a House and a Mortgage

spousal housing.... even not in your name.... is YOUR HOUSING if you live there.......

 

Retired Lender
Message 4 of 7
MYRLORA
Established Member

Re: On the market for a House and a Mortgage

I was actually miss-informed by a local lender who "pre-approved" with a conventional loan with 5%. My only option at this point is FHA, but with the change in January on the FHS loan limit from $417,000 to $345,000 and prices on my area goin up faster than I can ge my hand on the $72k difference, I'm screwed. My other options at this point is either a lease-purchase or land contract and I have no idea where to start.  

Message 5 of 7
ShanetheMortgageMan
Super Contributor

Re: On the market for a House and a Mortgage

We've actually been able to get this situation done in the past, as long as you aren't on title at the time of the application and you aren't on the mortgage then the property isn't held against you.  You will still say you owned the property (the loan application asks where you've lived for the past 2 years and if you've owned or rented, so that has to be answered honestly).  Technically guidelines will permit it, although you may run into an underwriter who has issues if they are playing it conservatively.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 6 of 7
MYRLORA
Established Member

Re: On the market for a House and a Mortgage

Thanks for the input. Although I'm not on the mortgage on the current property, I am on the Title and that seems to be the issue.

Message 7 of 7
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.