Can I qualify for a mortgage?

Anonymous · ‎05-26-2009

Hello I'm new to the forum and this is my first post. I filed chapter 7 bankruptcy on March 1, 2007 and on July 5, 2007 I was discharged. I pulled my FICO scores on February 13, 2007, having established no new credit for my self. My scores were as follows:

EQ: 701

EX: 696

TU: 681

I applied for and opened a new Best Buy store credit card with a limit of $400 today. I was waiting for the 2 year mark after discharge to apply for new credit and to pull my new FICO scores.

I have approximately 10K in student loans that are deferred until I graduate. Other than that, I have no monthly obligations. I am looking to purchase a new home while the prices are good and I can qualify for the new home owners tax break. Is this possible? Also, my BF (who's scores are EX: 614, EQ:630 & TU: 596) will have to be on the loan in order for me to qualify with income as I work part time and attend school full time. We are trying to raise his scores but he has approx. $17K in student loans. If I put him on my secured credit card I will be getting in August, will his FICO scores be penalized due to my bk or raised because my FICO is higher.

Our goal is to finance our own home. Any information you can provide me with will be greatly appreciated .

llecs · ‎05-26-2009

You may want to pull new scores now. It will not harm your FICO score by doing so and much could have happened between now and two years ago. Unfortunately, EX no longer allows consumers to pull their own FICO score, but you can still get it from your lender when you app.

Ideally, you wouldn't want to app for anything 6-12 months prior to the time you app for a mortgage. On average, I lose about 20-25 points with each new CC reporting. I typically don't recover those points until a year later. YMMV.

For your BF, keep paying the SLs as planned. Paying on them sooner or faster won't help his scores any. Also, make sure you pull his FICO scores. AS mentioned, it is impossible to pull your own EX FICO score. If he has 0 CCs reporting, then adding him as an AU could help if that CC is older than his average age, is free of any lates, and has a low utilization. Ideally, you'd want 1/2 reporting $0 with the other half reporting less than 9%. If he is added as an AU, his scores won't be penalized for your BK (assuming the card doesn't report a BK).

When you guys app, the lender will look at the lower of the two middle scores, which is his EX 614.

Anonymous · ‎05-26-2009

Thank you! That is helpful information. When I posted my question I indicated that I pulled my FICO scores in 2007, I actually pulled them this year in 2009.

We'll keep plugging away at our student loans in order to help our scores and our debt ratio.

Again, thank you for the assistance.

BuckiRob · ‎05-29-2009

Underwriting criteria for mortgages is radically different now than it was a year ago. In most cases you are going to have to come to the closing table with 15-20% CASH down. You might find some builders who offer financing that will be less restrictive but the days of basically having nothing down are simply not available right now.

Anonymous · ‎05-29-2009

I was already planning on putting down the 20% so that I don't have to pay for PMI. I'm trying to save money (our retirement accounts have taken a huge hit). We are working on raising our FICO scores. I want to be back in the high 700's (at a minimum) and we definately need to raise his.