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@kberly69 wrote:1. Mortgage Credit Scores:2. Credit Negatives: If you have any, what negatives are on your credit reports. For each negative, please provide:
- 703 716 699 (probably a little higher now- regular FICO scores went up a couple points since the 8/31 report)
3. Gross Income. Gross income (before witholdings, medical/dental, 401k contributions), per your IRS tax returns, is what is important when qualifying, not net income.
- Type: Chapter 7 BK discharged 10/6/16, foreclosure 3/12
4. Source of income. Where is the income coming from? List each source.
- About $60K
5. Monthly debt payments.
- Employment- salaried, with same company for over 20 years
7. Assets/Reserves. This is to determine how much you could potentially have as a down payment and also as reserves to help qualify (for example if your debt to income ratio is high this could help qualify you anyway).
- $325
8. Location: This is to determine govt guaranteed loan limits, what special programs might be available for you, how much property taxes & homeowners insurance will likely be, amongst other items.
- Currently living in the home I wish to purchase. Parents bought home, I pay mortgage directly to the bank (have records of payments made). Home purchased for $152K, $30K down, currently owe around $120K. Based on my own assessment of comps, probably worth around $165 now. Parents willing to gift the equity.
- I likely won't have much to contribute to a downpayment
9. Property Description:
- Michigan
- Charlevoix County
- Single family home
11. Occupancy.
- Primary residence
- 3 people living there
12. Transaction Type. PurchaseQuestions:I know I am not eligible for an FHA until 10/18 and USDA until 10/19. Is there any way to get something going sooner? It's just killing me to pay the non-homestead tax rate without the ability to get the mortgage in my name even though I can afford it and my scores are decent.It seems it might make sense to wait the additional year for USDA- correct?I'd appreciate any insight you can give. Thanks!
Hi Kberly69,
I see a couple of possible issues (see red text above) that may cause problems.
1) You had a foreclosure in 2012 followed by a BK in 2016. Generally, when it comes to FHA, underwriters are loath to approve a file where you have any type of derogatory hits after a major derog like a BK or foreclosure & in your case you have a major followed by another major 4 years later.
If you have some type of extenuating circumstance for either or both of these situations, it may not be a problem & you may not need to wait until next year.
2) The gift of equity "may" be an issue with USDA but I'd have to do a little research to determine for sure if it would be a problem.
It's possible to get approved for a USDA loan 2 years out of a BK as long as you can get an approval through GUS. You would also need a lender that doesn't have an overlay of 3 years post BK.
@VALoanMaster wrote:
@kberly69 wrote:1. Mortgage Credit Scores:2. Credit Negatives: If you have any, what negatives are on your credit reports. For each negative, please provide:
- 703 716 699 (probably a little higher now- regular FICO scores went up a couple points since the 8/31 report)
3. Gross Income. Gross income (before witholdings, medical/dental, 401k contributions), per your IRS tax returns, is what is important when qualifying, not net income.
- Type: Chapter 7 BK discharged 10/6/16, foreclosure 3/12
4. Source of income. Where is the income coming from? List each source.
- About $60K
5. Monthly debt payments.
- Employment- salaried, with same company for over 20 years
7. Assets/Reserves. This is to determine how much you could potentially have as a down payment and also as reserves to help qualify (for example if your debt to income ratio is high this could help qualify you anyway).
- $325
8. Location: This is to determine govt guaranteed loan limits, what special programs might be available for you, how much property taxes & homeowners insurance will likely be, amongst other items.
- Currently living in the home I wish to purchase. Parents bought home, I pay mortgage directly to the bank (have records of payments made). Home purchased for $152K, $30K down, currently owe around $120K. Based on my own assessment of comps, probably worth around $165 now. Parents willing to gift the equity.
- I likely won't have much to contribute to a downpayment
9. Property Description:
- Michigan
- Charlevoix County
- Single family home
11. Occupancy.
- Primary residence
- 3 people living there
12. Transaction Type. PurchaseQuestions:I know I am not eligible for an FHA until 10/18 and USDA until 10/19. Is there any way to get something going sooner? It's just killing me to pay the non-homestead tax rate without the ability to get the mortgage in my name even though I can afford it and my scores are decent.It seems it might make sense to wait the additional year for USDA- correct?I'd appreciate any insight you can give. Thanks!
Hi Kberly69,
I see a couple of possible issues (see red text above) that may cause problems.
1) You had a foreclosure in 2012 followed by a BK in 2016. Generally, when it comes to FHA, underwriters are loath to approve a file where you have any type of derogatory hits after a major derog like a BK or foreclosure & in your case you have a major followed by another major 4 years later.
If you have some type of extenuating circumstance for either or both of these situations, it may not be a problem & you may not need to wait until next year.
2) The gift of equity "may" be an issue with USDA but I'd have to do a little research to determine for sure if it would be a problem.
It's possible to get approved for a USDA loan 2 years out of a BK as long as you can get an approval through GUS. You would also need a lender that doesn't have an overlay of 3 years post BK.
Hi and thanks- the foreclosure and BK were both a result of a divorce. Not extenuating, but stemming from the same trigger. I was stubborn and unrealistic in terms of what I thought I could do to pay back by creditors so I waited until it was utterly unmanageable. I hope that would matter to a lender- I wasn't doing anything stupid between the foreclosure and the BK, just trying to avoid it.
Any ideas of lenders who would touch me for a USDA loan next fall (2 years post BK)? By then I would expect very respectable FICO scores.