There are some private lenders who will give you a loan. Usually your credit score needs to be close to what a mortgage broker would want. You can have a co-applicant with good credit. Usually they need a job with pay stubs. Speak to a good local mortgage person. A good realtor should be able to recommend someone. I have people that I can count on to work with people who have credit issues.... more
If your interest is already low, it may not make sense to refinance--without knowing any details, your current interest rate, etc., do consult with your lender and or any qualified loan officer(s) and then make your determination.... more
You may be able to find a seller to carry the note for you with a large down payment despite the foreclosure being on your record. Otherwise you will have to go with a hard money lender, which will mean a higher interest rate. I doubt a conventional lender will work with you because of what the foreclosure will do to your credit score. It could take 3 to 7 years after a foreclosure for you to qualify for a conventional loan.... more
No. You must refinance your current mortgage if you want an FHA 203(k) Rehabilitation loan. Basically, you are taking out a new mortgage that must be in first lien position when recorded. The only way to do that is to pay off your current mortgage.... more
Thanks All! I've decided to go with option 2. I'm still debating whether to put the rest of the money into the down payment, or keep it in the IRA for 'emergencies'. (Medical? Buying another house in the future? etc.) I'll keep considering my options... :)... more
I agree with Doug that eventually you will want to run any likely scenario by a tax advisor, however, you can and should do a lot of the comparisons on the loan product side beforehand. It doesn't have to be as complicated as some would lead you to believe.
I always suggest you start with what you have. Assess the current terms and where things stand. Next, identify the alternatives. Finally, try to determine reasonable time frames, because from this point forward, any comparisons and contrasts you make will be subject to these projections. I recommend a starting point of at least 5 years.
I can help you in the following ways:
1) Work to determine the current status of your loan.
2) Identify two or three viable financing solutions for your future purcase.
3) With an indication of your time frame, factor all interest/payment and costs into the equation.
Armed with that knowledge, you could then consult a tax advisor or any other trusted resource and arrive at the best financial solution.
Let me know if I can be of service.