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Regular Contributor
My2cents
Posts: 231
Registered: ‎02-16-2008
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Will We Qualify? And for what amount?

Hello. DW and I are currently in Ch 13 and about to be discharged in 2 months.  Our scores are in the mid 600

(583-636-638) and (639-669-639) we make slightly over 100k together.  We have cards with only a 4% util, less than 600 dollars in CC debt.  Current bills only come to 1800 per month.  We also have some dwnpayment 25k.

We currently have a small mort 30k bal w payment of 400.00 dollars.  What can we get.

 

 

Trying to make the cents come together.  My2cents:smileywink:

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Established Contributor
MrCredit
Posts: 571
Registered: ‎11-13-2008

Re: Will We Qualify? And for what amount?

Im an analyst cant say which bank.... I want my job but.... I would say this, you will not be able to get a mortgage till it is discharged, or at least if you dont want to send red flags up to the trustee... With your income I would say you can get something in the neighborhood of 190-205k. The thing is you will have to FHA with these uncertain economic times, conventional mortgages have tightened up, the best thing is you will only have to pay 3%, I dont want to get noisy but if your money 25k is cash, I would wait till your discharge and put your down payment in the bank, they are going to want to see where you got the money from.... Good luck. By the way you should get a rate of something in the neighborhood of 6.5% it also depends on where you are buying FL and TX are tough markets due to homeowners insurance hikes and foreclosure rates, banks are being real careful lending in these areas. Your DTI looks great! You will have to wait 6 months after the discharge to do the mortgage though if you go through FHA
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BrianB_The_Loan_Professor
Posts: 1,381
Registered: ‎07-29-2008

Re: Will We Qualify? And for what amount?

You will be ablt to buy now if you choose with 12 months agreed payments and permission from the trustee.

 

Hard to say how much you will qualify for not knowing the taxes and what you intend to do with the current mortgage/home.

 

If you keep that then you will have to count the payment against your DTI

You have sufficient income to probably go around $1800 a month to $2,000 for a payment which will put you in the 250-275k range

Possibly more if you get rid of some of the debt

 

Brian

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Brian B The Loan Professor
Mortgage Banker Lending in all 50 states -
Established Contributor
MrCredit
Posts: 571
Registered: ‎11-13-2008
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Re: Will We Qualify? And for what amount?

If you buy now and use this 25k its going to raise some red flags in your ch 13
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My2cents
Posts: 231
Registered: ‎02-16-2008
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Re: Will We Qualify? And for what amount?

Hey thanks. You guys are great.  We are undecided about what we are going to do with our starter house, however it is very affordable and could be used as an investment property, we would love to get some rent money:smileywink: Ha Ha.  Thanks again your friend, My2cents:smileywink:
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My2cents
Posts: 231
Registered: ‎02-16-2008
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Re: Will We Qualify? And for what amount?

Shane what's your take?  The other posts were good as well.

 

 

My2cents:smileywink:

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ShanetheMortgageMan
Posts: 8,252
Registered: ‎09-28-2007

Re: Will We Qualify? And for what amount?


My2cents wrote:

Current bills only come to 1800 per month.  We also have some dwnpayment 25k.

We currently have a small mort 30k bal w payment of 400.00 dollars. 


 

I concur with the others on the Ch 13 BK discharge, can't buy a home until that happens.  How does the $1,800/mo break down?  Funny you say only come to $1,800/mo... that's a nice chunk of change.

 

What is the status of the home with the $30k mortgage on it?  Is it your home now?  Rent it out?

 

You also mentioned something about buying an investment property to get rent off of, an investment property for your situation is going to need at least 20% down (perhaps more with your scores) and you are going to need to be 2 years from the filing of the Ch 13 BK as well as it discharged.

Regular Contributor
My2cents
Posts: 231
Registered: ‎02-16-2008
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Re: Will We Qualify? And for what amount?

We are living in the home w the 30k balance.  I was thinking of renting out the 30k home when I move into my new home.

 

C13 BK filed in 05.  Last Payment will be made 11/08.  I was hoping to receive discharge papers before the start of the new year.  This would be a great way to start out the year.

 

1800 Breakdown

 

   400 mortg

   350 SLoans Me

   350 SLoans DW

   350 Childcare

     50 CCards

   300 Insurance

-----------------------

  1800

 

We are aiming to buy in June of 09 since the market is down and we are hoping it would still be a buyers market.

 

Thanks My2cents:smileywink:

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Super Contributor
ShanetheMortgageMan
Posts: 8,252
Registered: ‎09-28-2007
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Re: Will We Qualify? And for what amount?

[ Edited ]

The childcare & insurance isn't included in your debt to income ratio, so on paper you only have $1,150/mo in payments other than the new mortgage.  What price range are you shooting for and what area are you lookng to buy in?

 

Also, May/June usually starts the "busy season" in real estate - where there are more buyers, thus more competition for the homes on the market.  If you are looking to get a "deal" then most are found in the off-season for buying homes, in the later Fall, Winter, and early Spring.

Message Edited by ShanetheMortgageMan on 11-15-2008 12:55 PM
Regular Contributor
My2cents
Posts: 231
Registered: ‎02-16-2008
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Re: Will We Qualify? And for what amount?

We were hoping for 325k.  Either MS, AL, or GA.
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