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Mortgage after Bankruptcy, just need some help planning.

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Mortgage after Bankruptcy, just need some help planning.

So, our rebuild is going okay, I'm almost done with school. All that fun stuff. I'm with a new employer where I make a few more dollars an hour and get overtime; so that's all good stuff. 

My husband's scores caught up with mine, actually passed mine, his middle score is like 652 right now. We were discharged in Feb of this year. We have a lot of equity in our current home thanks to the fluctuations in the market. I have a potential job interview in another state- I haven't accepted yet, just got the message. We already have a cash offer through one of those places that buy your home- after clearing our current mortgage we should have about $80,000 down for a new house. 

After looking at homes, anything we buy in the new area would be between $130k and $160k. I would estimate that I will move into the new area with a job earning about 42k annually and spouse will have to find a job. My goal would be to put down whatever down payment is required and then leave the rest untouched in savings until I'm at the new job long enough to know it's stable and then put that down on the mortgage. 

Anyone familiar enough with mortgages to walk me through the steps? I mean, we would likely have more options available if we wait the whole two years, so another year and 5 months. Additionally, how in the world do people move to a new area, start a new job and buy a house? I remember the last time we bought a house they wanted proof of how long we'd been at our current jobs and so on. Does that get more flexible with a bigger downpayment? The only problem with that of course being that a lot of mortgage companies don't bother writing below $100,000, so it couldn't even be a particularly large downpayment and still be over $100,000. 

I mean, there are some junky cash buy homes that I could pick up with cash, live in a couple years and then rent out after being at a job long enough to qualify for a mortgage. 

I need a rational mind to talk me out of moving into the middle of nowhere Michigan on a whim next week.. lol 

 

Starting Score: EQ 595, TU 538, EX 577
Current Score: EQ 642, TU 604, EX 641
Goal Score: 700


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Chapter 7 discharged 2/20/19
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Re: Mortgage after Bankruptcy, just need some help planning.

If I were you I would cool my jets a bit.   First, don't sell in a rush to one of those companies that will "buy it right now for all cash."   They only do this to offer you a low ball price so they can resell for more.   Those sales are really for desperate sellers -- or else those companies prey on the elderly.

As you know it's normally two years for FHA/VA, I believe three years for USDA loans, and four years for conventional.

Just as with selling to that type of seller, the only lender you will get is some version of a suprime lender.   With a huge downpayment you could probably get financed for something much higher than market rate.

But you haven't even moved to this place yet.  You may hate it or hate the new job, or your spouse may not be able to find work.

If I were you, I would just rent out the house you have now and hold it until you are eligible for an FHA loan 24 months post discharge.   Just rent where you are going.    Also by living in the new place for a while, you can get a feel for real estate values and what neighborhoods or areas you would want to live in.

Good luck.

FICO 08: EX-698, EQ-738, TU-721 - [8/2/2019]
FICO 09: EX-748, EQ-785, TU-770 (8/2/2019)
Mortgage: EX-737, EQ-769, TU-761 - [8/2/2019]
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Re: Mortgage after Bankruptcy, just need some help planning.

I'm of the opinion that you should ALWAYS rent for a bit when moving to a new place. Scope it out . .see the areas you like, where you want to be, make sure that you even like the place and want to stay there, etc.

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Re: Mortgage after Bankruptcy, just need some help planning.

I agree.

 

Why buy a house at all in 2019? Most people don't even stay in their house past 5 years. Buying a home isn't an investment as it was back in the 80's. Now you are paying more in property taxes, hoa fees, upkeep combined than you are in the actual house. Everyone wants money now when it comes to home ownership. When you go to sell the house you are paying everyone under the sun to get the house sold. Realtors taking big chunks of your so called investment, Title companies, buyers want closing costs etc. Just a bunch of nonsense.

 

If I were you I'd rent a nice house and let all that crap be your landlord's problem. That way if you get in a bind you can just move. Put that money in a CD or Stock and invest that way.

Equifax - 628, Experian -627, Transunion- 654 In the garden until 01/01/2019
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Re: Mortgage after Bankruptcy, just need some help planning.

Thank you, yes, I needed some sense talked into me. Spouse would not be able to find a real job there- I have relatives in the area and am pretty familiar with the job market. The plan would be to go to single income at that point- but, yes, I definitely want to make sure that I like the job because it's a smallish community and I would be driving an hour to work anywhere else. A family member has a cabin that's empty most of the year that is pretty small that I could probably rent. It would be half an hour from my work location, but, still would let me get a feel for whether or not working there is something I want to do. After a few months I could make a decision instead of just jumping the gun. Spouse could stay behind so he could keep his job as long as possible and keep the house up until we decide. 

Because yes, I wouldn't want to be stuck there if I hated it or had an hour commute. There are very few rentals and the housing market is cheap- like $70,000 for a 2800 sq foot house in town. That's not a house I want longterm- but, a good house to buy cash and not have a mortgage for a couple years. So part of me was thinking that if I hated it, could always rent the house back out until it sold since the area is really light on rentals; but, then would still be stuck dealing with the area. 

 

Thank you, I come up with these harebrained ideas in the middle of the night and need to bounce them off someone else. My spouse will just agree and go along with whatever crazy scheme I come up with- so glad I bounced it off someone else too. Smiley Happy 

Starting Score: EQ 595, TU 538, EX 577
Current Score: EQ 642, TU 604, EX 641
Goal Score: 700


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Chapter 7 discharged 2/20/19
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