Home Buying in Louisiana>Question Details

Kat, Home Buyer in Charlotte, NC

My credit scores are (Trans) 704, (Equi) 705 & (Exp) 706 and my annual salary is 25,000...can I get a home loan?

Asked by Kat, Charlotte, NC Thu Jun 13, 2013

I had a bankruptcy discharge in Jan 2010. My rent is currently $870 per mo. I've been living in an apt for 13yrs. My lease is up for renewal and will being going up to $885 per mo. I've never missed a payment or been late. I have one credit card & I pay the full balance every month. I'd like to know if I have any chance of getting pre-approved/approved for a loan.

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You would appear to meet the guidelines for credit scores and the waiting period after a bankruptcy discharge. Most lenders will also have a minimum tradeline requirement to prove that you have adequately re-established credit. This likely means you'll need 2-3 accounts (credit cards, student loans, car, etc) with at least a 12-24 month satisfactory payment history.

As far as how much of a mortgage you can qualify, this is based on your income and debts. A general rule of thumb is that the monthly housing payment - including property taxes, homeowner's insurance, and PMI- should be no more than 29% of your income and the total debts including house payment should be no more than 45% of your income.

Based on your income, that would translate to a monthly mortgage payment of around $604 per month. You may be able to exceeed that slightly, but that would be up to the underwriter and they are normally hesitant to grant exceptions in cases where you've had a bankruptcy.

Hope this helps!
Tony
0 votes Thank Flag Link Fri Jun 14, 2013
Credit scores should be good enough and your income should be enough to qualify you for a loan and the bankruptcy being more than 3 years since the discharge should be ok but the only way to find out is to talk to a few lenders and see what they say. There are some other things that they will consider as well when qualifying you. I would call some lenders tomorrow and see if they can give you some good news. Good Luck
0 votes Thank Flag Link Thu Jun 13, 2013
Thanks a lot!
Flag Fri Jun 14, 2013
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