All the while you should be building up new credit files by obtaining a secure credit card. Google "Orchard Bank Secure Credit Card". I know that Orchard Bank will report the credit card to all 3 bureaus. Lastly, for an additional trade line take some of your settlement payment, deposit it with a small local bank, and ask to take out a $1,000 loan to be paid back in 12 to 24 monthly installments. Just make sure that the bank reports to the bureaus.
Also - there's nothing wrong with saving your cash and renting for a while longer while your credit improves. I wouldn't feel rushed to make a purchase (having said that, $700/mo for utilities sounds really high).
Good luck with your home search. It sounds like you've worked very hard to get through some very tough times -- good for you.
I'm sorry to hear about your unexpected financial dilemmas. Please call a loan officer I deal with. Her name is Christina Lovell with Prime Lending. Her phone number is 240-405-4883. There is no fee or obligation to go over your credit with her. She is an expert with several loans and she will be able to tell you what you can do or when you could try to purchase something. I actually found my investor a townhome for $80,000 in Brunswick it was a fixer upper but there are definitely a lot of opportunities out there. Please give Christina Lovell a call today and let her know Tammy Durbin referred you. Good luck
Tammy Durbin, e-PRO, GRI, SFR
Accredit REO Agent and Short Sale Specialist
Executive, Directors & Presidents Sales Awards
Long and Foster Real Estate Inc.
The only one that can answer your question would be loan officer. My opinion would be if everything has been paid and it was 6 years ago that you should be ok. If not, I have a loan officer that can work with you to show you how to repair your credit and up your credit score in a short amount of time.
If you wanted to keep your payment close to what your are paying for rent, I would say that you could afford a little more than $100,000.
I am a buyer specialist and would be able to help you find a home that would suit your needs. I work in Montgomery, Frederick, Carroll, Howard and Washington Counties.
Please feel free to contact me on my cell phone or via e-mail and I can get you in touch with the lender that would be able to answer your question. We would know something today.
I look forward to your call.
Thank you, Patty
Patty Smith, Realtor
RE/MAX REALTY GROUP
Office: (301) 831-5600 x404
Cell: (240) 876-3424
"Bring Me Your Dreams and I'll Find them a Home"