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Member
Posts: 7
Registered: ‎06-29-2014
0

What's the Chance of a Mortgage Loan AND Are there any Downpayment Assistance Programs Still?

Hi All,

 

I am new to the forum and in the process of cleaning up my financial credit history. I have learned a lot over the last 3 weeks since my aggressive cleanup process began and hope to rise from the ashes as they say one day soon. Therefore, I would appreciate any feedback or comments from those who are familiar with my concerns and have something to share about it or your experiences that may be similar. I am glad to have found this forum and the available options to monitor, track and clear up the “baddies” that accumulate on your financial credit. So here goes:

 

I am working towards cleaning my credit up and want to buy a home again. I have owned before but since my BK and the housing bubble and recession not sure what is possible in the near future with no savings to put towards a down payment. Long story short:

 

  • Self-employed (over a decade)
  • Income Average: $73K (last 3 years average) - have tax returns/profit loss statements I file annually but write off as much as I can legally for tax purposes.
  • Filed BK13/Converted to 7 and Discharged in 2009
  • Have a State Tax Lien showing on 2 Reports (although paid in full over a year ago)
  • Just pulled my FICO scores last night and they are:   EQ: 636/EXP: 660/TRANS: 684
  • Owe Student Loans: $79,500 but am in school so payments are deferred and in good status for 2 years
  • Car loan balance $23K – Paid on time
  • Credit cards: Balance of $2901 of $4000 limit/$123 of $300 limit/$1330 of $2000 limit – all Paid on Time

 

Right now I am working to have the derogatory things removed from my report that are inaccurate. Thus far, I have had 9 things removed within the last month. My question is what are the likely chances of getting a mortgage loan for $250K with $0 or 1% down? I have read online that there are down payment assistance programs available, anyone can share your experiences, knowledge or insight about this?

 

Thank you again for your time and attention.

 

Moderator
Posts: 8,529
Registered: ‎03-06-2010
0

Re: What's the Chance of a Mortgage Loan AND Are there any Downpayment Assistance Programs Still?

Is the $73k before write off's or after?

 

Usually the issue with self-employeed is showing enough income to support the mortgage, especially if you have a very aggressive accountant.

Member
Posts: 7
Registered: ‎06-29-2014
0

Re: What's the Chance of a Mortgage Loan AND Are there any Downpayment Assistance Programs Still?

Thanks for the reply. Smiley Happy  Not sure I understand your question, so bear with me.  I still owe actively the $73k but my student accounts are in good standing and consolidated but are deferred since I'm an active student at this time.  Prior to that they were lates...individuals around 15 or so for small amounts...2k here... 3500 there...etc.. Trying to get those old accounts removed if possible since they've been consolidated and in good standing.  When I entered the rehab program a couple of years go to consolidate they we're suppose to remove them after I completed and made payments on time. I have been on time until I re-entered school so now the consolidated accounts on hold until I graduate or while I'm in school.

 

Im wondering if it will hinder with or without them showing on the report. Of course I'm gonna try to have them removed but not sure. Any thoughts?

Member
Posts: 7
Registered: ‎06-29-2014
0

Re: What's the Chance of a Mortgage Loan AND Are there any Downpayment Assistance Programs Still?

Oh....I for got to mention.....I still work full time...so there's no lapse in income.

Moderator
Posts: 8,529
Registered: ‎03-06-2010
0

Re: What's the Chance of a Mortgage Loan AND Are there any Downpayment Assistance Programs Still?

I'm sorry. I see my answer was vague.

 

What I meant was what is your income? You said $73k average over the past three years. Was that income after business expenses or before?

Member
Posts: 7
Registered: ‎06-29-2014
0

Re: What's the Chance of a Mortgage Loan AND Are there any Downpayment Assistance Programs Still?

[ Edited ]

I understand what you mean.. 26k for lasts years after writing out expenses.  I didn't calculate all three for average after taxes just average income.

Super Contributor
Posts: 7,294
Registered: ‎07-03-2007
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Re: What's the Chance of a Mortgage Loan AND Are there any Downpayment Assistance Programs Still?


Phoenix5 wrote:

I understand what you mean.. 26k for lasts years after writing out expenses.  I didn't calculate all three for average after taxes just average income.


 

lender will use $26K

 

you cannot tell the irs you make 26k and your lender that you make 73k

 

 

* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.

* Lending across the entire 'Great State of Texas' (and now Louisiana)since 2004

Member
Posts: 7
Registered: ‎06-29-2014
0

Re: What's the Chance of a Mortgage Loan AND Are there any Downpayment Assistance Programs Still?

Thank you Dalaloanguy!! With a good score, my goal is at least 700.  Is it possible or likely to get a mortgage on  a $250K house with 26k?  Or would income be too low?

Moderator
Posts: 8,529
Registered: ‎03-06-2010
0

Re: What's the Chance of a Mortgage Loan AND Are there any Downpayment Assistance Programs Still?


Phoenix5 wrote:

Thank you Dalaloanguy!! With a good score, my goal is at least 700.  Is it possible or likely to get a mortgage on  a $250K house with 26k?  Or would income be too low?


Income is too low.

Score is only one aspect

You have to make enough to pay back the loan. This is where DTI comes in...

Member
Posts: 7
Registered: ‎06-29-2014
0

Re: What's the Chance of a Mortgage Loan AND Are there any Downpayment Assistance Programs Still?

Thank you. I see what you are saying now and have to either make more money, reduce my biz expenses (even if it may put me in a tax paying situation) or find a lump sum somewhere for a downpayment.  Well at least I have some direction now.

 

I appreciate all the feedback!

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