Qualifing for a mortage with a bk and after the age of 70???

[ChistineNJ]

hello all i would like to ask for your input/advice on the possiblity of a mortgage and what would i have to do you qualify

here is a snapshot of what my credit/income of myself and co-borrower

The Home: the home im eyeballing has been on the market for 1year and I hope it stays on the market anthor lol

Price: 387K, steal considering most homes in my area on my street starting at 400K and up,

Location: Bergen County, NJ 

I currently rent for $1600.00/month ive been with the same landlord for 6 years.

I am 1 year post bk, currently my score is 633 i took a substantial hit because I maxed out some of my cards,(emergency situation)  brightside it was a temporary situation all account will be back to zero or less than 10% within the next billing cycle so i hope my score rebounds back to 650. Since my BK has been discharged i have had perfect on time payments and I have re-established credit. I have intallment accounts,& revolving credit accounts. I make about 50k a year, My goal is to obtain a mortgage next year when my BK is 2years old and good payment history of 24months. My issue is employment although I "plan" to stay with my current employer i have had gaps in my employment, I am a nurse and I work through agencies. My last assignmnet ended in May, so for the year of 2014 I worked from Jan-May 2, ive been with my new employer since June 3rd so there is a 4 week gap plus a change of employers. I am planning on staying with this employer for awhile it was a direct hire with a nursing home. my question is how does the bank look at such a situation from the employment standpoint? when I plan to apply I will have positive student loans, about 12month history of ontime payments, and the 24 months of positive credit card payments. 

do you guys think i can swing a 387k loan on my own? how much of a down payment would i have to have? Im planning to have at least 15K

My father is willing to co-sign how ever we have to clean up his credit just a bit right now he sits at 600. however his salary is 45k/year that consists of ft employment and a retirement benefit. My fathers employment however is stellar he has been with his current employer 30years. my question about my father is will a bank let him cosign at the age of 70??? he has not really used his credit recently he has no paid off mortgage reporting. he does have 24 months of satisfactory payments, and he has a new auto that should be paid off by then he only financed 15k with hopes of having it paid off with 1 year. he does have collections of small amounts that are paid.

what do you guys think? I am aiming for a VA loan, since my dad is a veteren. 

[ShanetheMortgageMan]

Knowing how expensive Bergen County property taxes are, with your income alone ($50k/year) you are likely going to need a very large down payment, more or less 50% of the sales price.  With just $15k down the monthly payment with property taxes, homeowners insurance and PMI would be around $2,800/mo, or about 68% of your income.  That needs to be no more than 45% of your income.  Would you really be comfortable with a $2,800/mo housing payment?

VA loans are only for primary residences, and the veteran (or their spouse, or dependent child) need to occupy the property.  So he could live in the home with you, but he could not co-sign on a VA loan on a home that he would not be living in.  If he will be living in the home with you, then when a "joint loan" is being made (that is a VA term) VA will only guaranty the veteran's portion.  If it's just you and your father on the loan, then the veteran's portion is 50%.  For the remaining 50%, lenders will need a 25% down payment... so 50% of 25% down is a 12.5% down payment.  On a $387k sales price that'd be a $48,375 down payment.

Your father can co-sign with you on an FHA loan though, and 3.5% down would just be required, his age would be fine as lenders can't discriminate based on age (as long as they aren't a minor).  An additional $45k/year of income would certainly help reduce the debt ratio, but his own housing expenses (+ other debt) will also have to be factored in to what you both could qualify for.  Your debt payments (which you didn't mention how much they are) also will determine how much you can qualify for.

Your 4 week gap & change in employers wouldn't be an issue.  When job gaps get to 60-90 days then they start to need to be explained, and then when they are over 90 days usually 6 months on the new job is needed.

Your are definitely on the right track with your credit improvement though.  I think it's just going to be a matter of finding a home that will fit your budget... you may have to look a little further out from NYC.

[ChistineNJ]

Thank you, you have explained alot, maybe i can hold out 2 years and get a good down payment. Now im really trying to get my strategy together as well as down payment.