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Hi All,
I am new to the forum and in the process of cleaning up my financial credit history. I have learned a lot over the last 3 weeks since my aggressive cleanup process began and hope to rise from the ashes as they say one day soon. Therefore, I would appreciate any feedback or comments from those who are familiar with my concerns and have something to share about it or your experiences that may be similar. I am glad to have found this forum and the available options to monitor, track and clear up the “baddies” that accumulate on your financial credit. So here goes:
I am working towards cleaning my credit up and want to buy a home again. I have owned before but since my BK and the housing bubble and recession not sure what is possible in the near future with no savings to put towards a down payment. Long story short:
Right now I am working to have the derogatory things removed from my report that are inaccurate. Thus far, I have had 9 things removed within the last month. My question is what are the likely chances of getting a mortgage loan for $250K with $0 or 1% down? I have read online that there are down payment assistance programs available, anyone can share your experiences, knowledge or insight about this?
Thank you again for your time and attention.
Is the $73k before write off's or after?
Usually the issue with self-employeed is showing enough income to support the mortgage, especially if you have a very aggressive accountant.
Thanks for the reply. Not sure I understand your question, so bear with me. I still owe actively the $73k but my student accounts are in good standing and consolidated but are deferred since I'm an active student at this time. Prior to that they were lates...individuals around 15 or so for small amounts...2k here... 3500 there...etc.. Trying to get those old accounts removed if possible since they've been consolidated and in good standing. When I entered the rehab program a couple of years go to consolidate they we're suppose to remove them after I completed and made payments on time. I have been on time until I re-entered school so now the consolidated accounts on hold until I graduate or while I'm in school.
Im wondering if it will hinder with or without them showing on the report. Of course I'm gonna try to have them removed but not sure. Any thoughts?
Oh....I for got to mention.....I still work full time...so there's no lapse in income.
I'm sorry. I see my answer was vague.
What I meant was what is your income? You said $73k average over the past three years. Was that income after business expenses or before?
I understand what you mean.. 26k for lasts years after writing out expenses. I didn't calculate all three for average after taxes just average income.
@Phoenix5 wrote:I understand what you mean.. 26k for lasts years after writing out expenses. I didn't calculate all three for average after taxes just average income.
lender will use $26K
you cannot tell the irs you make 26k and your lender that you make 73k
Thank you Dalaloanguy!! With a good score, my goal is at least 700. Is it possible or likely to get a mortgage on a $250K house with 26k? Or would income be too low?
@Phoenix5 wrote:Thank you Dalaloanguy!! With a good score, my goal is at least 700. Is it possible or likely to get a mortgage on a $250K house with 26k? Or would income be too low?
Income is too low.
Score is only one aspect
You have to make enough to pay back the loan. This is where DTI comes in...
Thank you. I see what you are saying now and have to either make more money, reduce my biz expenses (even if it may put me in a tax paying situation) or find a lump sum somewhere for a downpayment. Well at least I have some direction now.
I appreciate all the feedback!