Home Buying in Ellet>Question Details

amp42578, Home Buyer in Akron, OH

Buying First Home...

Asked by amp42578, Akron, OH Mon Apr 8, 2013

My boyfriend and I are looking to buy a home. We are both employed full time. The problem we are facing is or credit isn't the greatest. I recently filed Chapter 7 bankruptcy, he has quite a bit of debt. I'm not sure I can qualify for a loan, I know he cannot. Is there any hope or help for us?

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7
A FHA loan requires out of Bankruptcy for atleast 2 years and a credit score of 650 or higher with stable income.
0 votes Thank Flag Link Sun Sep 8, 2013
Hello,

Here is the link to my home that was just put on the market. This was my first home and I had an FHA loan. I'm relocating through SIRVA, and SIRVA Mortgage is offering special financing on my home. Please contact Kathy Mansfield if you're interested! This makes a fantastic home. The only reason I'm leaving is due to work.

Kathleen A Mansfield
Howard Hanna
2603 W. Market St, Suite 100
Akron, OH 44313
Primary: 330-813-3072 Secondary: 330-836-9300 Other: 330-777-0611
http://neohrex.rapmls.com/scripts/mgrqispi.dll?APPNAME=neohr…
0 votes Thank Flag Link Sat Apr 13, 2013
Hello! My name is Paula, and I believe I can help you. I've worked with Homeowners for the past year who are willing to do a Land Contract anywhere from 12-36 months. I currently have a 2 bedroom home in Barberton OH that I'm willing to do a "Lease with Intent To Purchase" on . . . You can contact me at paulawilley.kwrealty.com or call direct at 330.858.0909. Have a great day!

P.S. The date that your bankruptcy is discharged is when the years begin. Also, there are Credit Restoration Companies that will help you in the process of cleaning up your credit reports :)
0 votes Thank Flag Link Mon Apr 8, 2013
Hi,

Chapter 7 Bankruptcy wait periods vary pending on the loan program you are hoping to be able to obtain.

Conventional financing requires 4 years from a Bankruptcy discharge.
FHA requires 2 years.
VA requires 2 years.
USDA requires 3 years.

Those waiting period could be shorter if there were extenuating circumstances at that time or not. The guidelines for extenuating circumstances vary per program. Also, if there was a home loan / mortgage included in the bankruptcy, the waiting periods extend.

My advice would be to:
1) Rent - be prepared to show your payment history for your housing. (Start collecting 12 mo cancelled checks.)
2) Start to re-establish credit. Track your payment histories. You'll need traditional or non-traditional tradelines (your ability to show you can pay monthly to creditors).
3) Start to save your down payment & closing costs -- if you're not eligible for 100% financing then you'll need at minimum 3.5% down for an FHA loan. Also, if the seller (whomever you buy from) isn't willing to help cover some or all of your closing costs then you'll need to have funds available. You willl need funds for any inspections as well as for an appraisal at the very least.

So once two years have passed, you'll have a better credit score and you'll have the ability to negotiate the purchase if you have the funds to do so. ** Gift funds are allowed on some of the programs.

If you find you have add'l questions let me know. I'd be happy to walk you through.

Regards,

Kimberly Lawson
Licensed Ohio Loan Officer
Phone/Fax: 888-659-3848
EMAIL: kimberly.Lawson@fpfmail.com
Licensing: NMLS: 5601 OH.LO.004495.000


First Priority Financial, Inc.
"Where Open Minds Close More Home Loans"
748 N Court St Ste 201
Medina, OH 44256
MBMB.850147.001 NMLS: 3257
We are an equal opportunity lender.
0 votes Thank Flag Link Mon Apr 8, 2013
Good morning amp42578,

Your best course of action is to meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.

If you are not qualified at this time---and it sounds like you might not due to the credit situation---you'll at least have a mortgage professional give you an overview and recommended course of action to prepare for homeownership in the future.

Trevor Curran
NMLS #40140

If you thought my answer was helpful please give me a "Thumbs Up" or "Best Answer." Thanks!
0 votes Thank Flag Link Mon Apr 8, 2013
There is always hope. You just need to find a Realtor who can help you locate a seller who is willing to work with you. Such sellers do exist, but you may have to be prepared to compensate that Realtor for the extra work involved in a project like this.
0 votes Thank Flag Link Mon Apr 8, 2013
Amp42578, Good question my first recommendation would be to contact a good lender in your area, they will be able to give you proper guide lines and recommend a credit repair agency if needed. One other option you could explore after contacting a lender is look at some of the rent to own properties available, and your in luck I have them on my web site, see link below.
KenWoods.KWrealty.com
0 votes Thank Flag Link Mon Apr 8, 2013
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