home loan

[Anonymous]

Where looking towards buying a home-My question is how much would I be able to borrow...My boyfriend and I where going to do it together, but he has a bk about , and a foreclosure of home during previous marriage, which all happen within the last 3 years...He makes about $60,000...And I only make $20,000...How big of a loan would I be able to get if I have no debt, get my scores to atleast 680 and put about 8-10k down.....If I get loan and only my name---Would it be impossible to purchase a home that cost 100,000 with the info I provided... 

[Anonymous]

And I would be a first time home buyer if that matters any..

[ShanetheMortgageMan]

Assuming you are buying in an area with low property taxes, even a $100k sales price is a bit much for $20k/year of income.  Your housing portion of the debt to income ratio would be high - around 45%.  You have a chance but you might get cut off at about $80k or so.  When did the BK discharge and the foreclosure happen for your boyfriend?

[Anonymous]

 Well his Bk discharge date was May07....As for the Forclouse, I dont see where it says discharge only the following dates...

Filed: 06/12/2007
Closed: 06/25/2008

[ShanetheMortgageMan]

What was the reason for the BK & foreclosure?  Was it extenuating circumstances, financial mismanagement?

It'll be interesting to see how the foreclosure reads on the actual credit report a lender would use.  From the info you provided it appears they'd consider the foreclosure happening in 6/08, which isn't as good as if they thought it was 6/07.  Might want to request a letter from the mortgage lender stating when the foreclosure actually happened, they might say it was in 6/07.  If the BK/foreclosure was due to extenuating circumstnaces, 12 months after the fact, with perfect payment history, your boyfriend might be able to get approved for an FHA loan.

[Anonymous]

Well I dont know if they would consider extenuating circumstances this but....But he was ordered by judge to remove himself from the home and to provide her temp alimony which included payments for the house,since she claimed it as one of the expenses she had to pay...Long story short she didnt pay it, saved all she could for several months and left state---Before this he had never ever been late on the house payment for 7 years straight....He actually used his VA loan to get that home, and I doubt they would consider it again..

[ShanetheMortgageMan]

Yeah that wouldn't be considered extenuating circumstances unfortunately, so you'd have to be the only one applying.  You'd really need to apply and have a loan officer run your loan through automated underwriting in order to say if you'd be able to qualify for that high of a loan amount.  For manual underwriting there is no way, but automated underwriting you'd have a chance.  Another thing to consider is that if you and you boyfriend split up, the mortgage is in your name alone, and would you be comfortable with that payment on just your income?

[Anonymous]

May be a silly question but...

What the difference between manual underwriting and the automatic one?

[ShanetheMortgageMan]

Not a silly question.  Automated underwriting is the first way that loan officers try to approve people for FHA loans, automated underwriting it's a computer program that analyzes risk on mortgage applications, and if you don't present excessive risk then you'd ge an "Accept" response from automated underwriting.  If you present too much risk, or something doesn't quite fit, you'd get a "Refer" and then a human being underwriter would re-review all of your documentation to see if you still fit the guidelines.  Often someone who has a BK discharge in the last 2 years will get a "Refer" from automated underwriting, but if it fits the BK guidelines for FHA (such as a discharged Ch 13 BK that had on time payment plan for at least 12 months) then it can still be approved.

[Anonymous]

Your salary should make you eligible for downpayment assistance grants.  You should contact your local hud housing coordinator.  While most likely your eligible it doesn't mean you'll get it because they run out of money.  Go to www.hud.gov and put in your state and county and they will give you a list of addresses and phone number of people to contact.