I am looking to move into a home. My credit score is 642. My husband's is 599. My husband got laid off and he claimed bankruptcy two years ago only in his name. We sold our house. We fell behind on some of my bills. All my bills are caught up now. I only have one credit card that I am making payments on over the limit. I have a lot of medical bills on my credit report. My son was very sick until recently. I make payments though. I have a lot of accounts that are negative, but most are paid off now.We tried to get a loan through a bank. They said because the bankruptcy has not been three years, they could not approve the loan. We really need a house and our whole life turned upside down when he was laid off. He now makes 65,000 a year and I stay home with kids. Do you think there is any company out there who can help?
2007-01-09 08:52:32 · 8 answers · asked by floridagirl 2 in Business & Finance ➔ Credit
My debt ratio to income is 32%
2007-01-09 08:55:13 · update #1
As you seem to know, if you use your husband's income for mortgage qualification, the lender will also use his credit score. In fact, the great majority of lenders will not even consider YOUR credit score.
Now, based on this fact, there are two options I will suggest:
First, you can find a subprime mortgage lender that only requires 1-2 years of bankruptcy seasoning. Banks tend to be the most conservative of all mortgage lenders. There are many lenders that offer special mortgage programs for borrowers in your situation. Also, I know of a few lenders that WILL consider a non employed spouse's credit score, which may be worth looking into.
Second, you can look into a mortgage program that does not require you to document your income or employment - often called a "no doc mortgage". Although it can be a little tricky, this could allow mortgage qualification to be based on YOUR credit score, which will result in much lower rates and better mortgage programs.
A couple questions:
1. Do you have money available for a downpayment?
2. Is the DTI you listed based on the debt listed in just your credit report or is it for BOTH you and your husband?
3. Have any medical bills gone to collection? If so, is any single bill over $5,000?
I recommend you speak to a GOOD mortgage broker. The subprime mortgage market can be confusing to say the least, and rates can vary widely between lenders.
You may want to check out my website http://www.mortgagemystery.com/
It is NOT a sales or "fill out an application site" - it has alot of information about mortgage shopping, mortgage programs, qualification, etc.
If you require further information, you can contact me directly.
2007-01-11 10:38:11 · answer #1 · answered by robert_byrne 2 · 0⤊ 0⤋
Most likely you can get a house - though not from a bank. You need a good mortgage broker to assist you. It is also going to be dependent on the down payment you have, the more down the better the terms will be.
With you not working now - he is the main person for the loan approval, and 599 is not great, so expect some pain in the rates.
2007-01-09 08:58:23 · answer #2 · answered by walkinandrockin 3 · 0⤊ 0⤋
I was about to ask you what city you live in, then I saw your name.
If you live in Dade County or near Ft Lauderdale or some other area where real estate is high, you're going to have trouble finding something with $65k income.
If you're in the panhandle or another lower value area, you should just wait your 3 years and save up. Pay for storage, rent a 2 or 3 bedroom, and then move into something nice.
As it is, your credit reports are going to force you into excessive interest rates. If you try to buy now, you're going to be a slave to house payments and gain very little ground.
If you save your money for a down payment, you may be able to get away with a high down payment and a low loan amount, a lower interest rate and pay it off quickly. For a family, home equity is very valuable and worth the wait.
2007-01-09 09:02:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I hope you mean its 32% WITH the mortgage. You have to be under 45%-- preferably under 35%-- for most banks, including the mortgage, taxes and insurnace.
I wouldnt go to a normal bank. I'd call a mortgage broker. They specialize in finding loans for just about anyone....so go that route. The phone book is a good starting point.
2007-01-09 09:07:54 · answer #4 · answered by Anonymous · 0⤊ 0⤋
some banks will do stated income and i think that would be an option for you! this is meaning the mortgage will be in your name and i think they can use your household income shop around but be aware of shady brokers and lenders tring to get you in a rip off mortgage. Reasearh the heck out of everything, eventhough you pay these people good money often they are going off of there best intrests only
2007-01-09 13:34:39 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Try a credit union. Or some institution that has only a local presence.
But you may be stuck with waiting three years no matter where you apply.
2007-01-09 08:56:43 · answer #6 · answered by Cribbage 5 · 0⤊ 0⤋
Check out the free evaluation form at
www.totaldebtsolutionsllc.com
They can recommend dozens of loan officers who can get you approved in Florida.
2007-01-10 08:56:44 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Call your bank and ask them to recommend mortgage brokers.
2007-01-09 11:24:51 · answer #8 · answered by Anonymous · 0⤊ 0⤋