We are coming up on our 3 year anniversary of our foreclosure and are hoping to purchase a home in the next few months. We have reestablished credit and have FICO scores in the 660-680 range. My husband has 2 collections on his credit from 3 years ago that he needs to get settled, but aside from that our credit is clean. We both have 4 credit cards and have refinanced one vehicle (Ally) and purchased another in my name (Wells Fargo). We are self employed with the business being established in 2009. It shows increasing income and for 2012 we should have a gross of about $115K all reported on tax returns. We will have 3.5% down and hope to purchase in the $250-275K range. Is this a favorable scenario? Also, how much in reserves will we need to get approved? I understand the more the better, but what is the minimum the banks look for?
Once you finish the clean up I would say yes...absolutely!
Go ahead and ask around for a good mortgage broker who can start putting some numbers together for you and advise you about your self employment income as well as your current DTI ratio, etc.