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Strategy for home loan after Chapter 7- Help Please!

Established Contributor

Strategy for home loan after Chapter 7- Help Please!

I realize that I am asking about this WAY in advance, as my plan is to possibly buy in April 2018 when my new job hits the 2 year mark.  I want to prepare in the best possible way and any direction that any of our mortgage gurus can give me would be greatly appreciated. Here are my current stats:

 

Fico 8's: EQ 687, TU 698, EX 679 

Mortgage Credit Scores:  EQ 682, TU 697, EX 675

Credit Negatives: All IIB- Deed in Lieu 06/13, Vehicle repo 08/13, several lates/charged off

Status: All negatives IIB Chapter 7. Discharged November 2015

Miscellaneous: Less than 24 months of reestablished credit. 17 months of new credit history. 18 revolving accounts. 3 installment accounts.  AAoA 4 years, nine months. Currently longest reestablished account is 17 months old but most will be 12 months old in August '17.

Monthly debt payments: $2K (between revolving, installments and student loan)

Student loans: $5K balance. Payment $125 per month included in monthly debt total above. Never late, even through/during Chapter 7. 

Gross Income: $107K

Source of income: Employed full time $65K, Retirement: $36K, Part time employment: $6K

 

Employment : Full time salaried job, employed for 16 months as investigator. Retired from 30+ years law enforcement career as detective. Part time job for 19 months in corporate security. Work 2 weekend days a month.

Assets/Reserves: Savings $29K +/-

Location: Oregon - possible zip codes 97304, 97005, 97051

Property Description: possibly condo or manufactured home/land purchase. ( I would want to possibly purchase a lot for the manufactured home at the same time. So it is possible to do a land/manufactured home loan package?)

Condition of the propery: Condo would be in excellent condition. Built 2005 or newer. Manufactured home would be new on a lot I would purchase at the same time.

Property Purchase transaction:  Looking at $200-300K 

Occupancy: Primary residence

How many people living there: One, maybe two (no additional income from 2nd person) 

 

Additionally: 

Even though I have multiple inquiries on my reports, I won't be apping for anything new before I purchase (gardening) and 16 of my 22 inquiries will be 21 months old in April '18. The others will be 13-14 months old. Is it better to wait for them to age off my reports?

 

I put about $1500-2K a month +/- into savings. Is it better to eliminate my revolving debt? It's about $25K (overall utilization is at 15%) most at 0% for another 16 months- some at 3% for another 8 months Should I pay it off and deplete my savings? I have kept the debt due to the fact that I need to establish payment history and at 0%-3% the cost of carrying the debt is minimal. I will have it under 8% total utilization by the time the intro offers expire. I could pay it off then or move it to another low BT option.

 

One of my biggest concerns is payment shock and how to handle it. I finished up a rental that was about $1600 a month (for 10 months) and now live with my DF on weekends and live in my new RV closer to my office during the week. The RV payment and space all in, is about $1200 a month. Will that at least count toward current housing expenses? If so, what documentation will I need to provide proof that I live there 3-4 days a week?

 

I really appreciate anyone taking a look at this and giving me some guidelines. I figure I have some lead time to adjust anything I need to in order to look my best for an underwriter. Also, any recommendations for a good LO/mtg company that lends in Oregon/all 50 states would be appreciated. I would like to start building the relationship sooner than later.

 

Thanks again!

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2 REPLIES
Frequent Contributor

Re: Strategy for home loan after Chapter 7- Help Please!

One thing I noticed right off is that with 30 years in law enforcement, just because you are at a new place, its still basically same field, so the waiting until 2 years because of that is not important. 

 

For existing residence, where do you get your mail?  At the RV Park?  I would think that would prove you live there.  And I would think yes, it shows for current housing expense.  Do you pay the rent to an idividual?  If so they can write a letter; provide cancelled checks for monthly payments if you paid by check, etc...or if paid online through bank account, you can do an ad hoc report for that payee and show only those payments and their dates. 

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In second year post 13 DC (12-28-15)
Entered garden 05-19-2017 CLOSED ON MY NEW HOUSE 5/17/17!!!!

Message 2 of 3
Established Contributor

Re: Strategy for home loan after Chapter 7- Help Please!

@junie, thanks for weighing in and congrats on the progress with your new home...you're almost there now and it must feel wonderful!

 

Yes, the space rental is paid to the corporation that owns it. I will be able to provide proof of payment either from them or from my bank account and the RV itself is one of my installmant loans (together it makes up the $1200 I pay for housing there). I guess I'm not really sure where my concern about that is coming from except that it's an unknown experience for me. For 30 plus years I always had a mortgage on a stick built home and when I would buy a new home, their wasn't much payment shock as I always stayed in the same basic price range. 

 

I really appreciate your thoughts and thank you again for taking the time to respond. I wish you years of great memories in your new home!

 

Smiley Very Happy

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