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Future Mortgage Questions

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Regular Contributor

Future Mortgage Questions

I am working on getting my mortgage scores up for a future home purchase in another state, and I have a few questions that I cant seem to find definite answers for... I am hoping someone here can help Smiley Happy
First off, I have a Ch7 that was discharged in October, 2018. Husband has a Ch7 discharged in June 2018. I have been actively rebuilding (see siggy), he now has 3 cards, and a mortgage (low payment) that was refi after Ch7. Our goal is to buy another house to move to in approximately 2020-2021. Our Dti is very low, about 14% I believe. Current mortgage payment is only 190.00 a month, and we may keep it for rental property when we move.

My current middle score is 640, his is 582. No mortgage was included in Ch7. We are planning on having a large downpayment, and both our jobs can transfer.

Now the questions:
Will we only be able to get a FHA loan because we have to wait 4 years for conventional?
Will we still have to pay PMI?
Is there any way to get a mtg BEFORE the 2 year seasoning for the CH7?
When figuring student loan payments, how much do I need to figure for dti? Balance is 40k, payment is 11.25 on PAYE program (my income alone).
I assume that we will need to find an agent/broker/bank in the area that we plan to move to, is that the best way to get the mtg?

Total income is 95k, but mine alone is 36k. My monthly minimums are student loans of 11.25, car payment of 400, and credit cards (min is less that 20 because I pif every month before reporting).

My bk was because of medical, no collections, etc other than student loans late 2013, 2014, and one in 2017.
Husband had multiple credit cards and 2 cars included in his.

Thanks for reading, any help or advice appreciated!
Chapter 7 DC 10/23/18
Starting FICO 8 11/22/18

Current FICO 8 7/28/20

GOAL 680 by 12/20
Current FICO 9 7/28/20

Student loans and car payments reporting positive



Message 1 of 5
4 REPLIES 4
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Contributor

Re: Future Mortgage Questions

Im definitely not experienced but were in process of buying a house right now & ive bought a house in past.
Imo i think your dti is fine. I think waiting those two years is fine also. You also only have pmi if you put less than 20% down.
I believe for student loans (i have those too..) they use what the future payment will be into your dti.
You guys should be fine. Imo.
Just keep your dti low, make on time payments.
Message 2 of 5
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Regular Contributor

Re: Future Mortgage Questions

As far as your FHA question, yes you will have to pay PMI. Your options are to either refinace out of it down the road or put 10% down and it will come off after 11 years.

Message 3 of 5
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Regular Contributor

Re: Future Mortgage Questions

I will still have PMI if I put 20-30% down on an FHA?
Chapter 7 DC 10/23/18
Starting FICO 8 11/22/18

Current FICO 8 7/28/20

GOAL 680 by 12/20
Current FICO 9 7/28/20

Student loans and car payments reporting positive



Message 4 of 5
Highlighted
Frequent Contributor

Re: Future Mortgage Questions

Yes you still have to have PMI on FHA even if putting 30% down. As the previous poster mentioned the only way out of the PMI before 11 years is to re-finacne to a conventional earlier than that. With doing 20-30% you will pay less PMI but you still have to pay it

Message 5 of 5
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