i think my brother is in WAY over his head he makes 100,000 a year so he has a good income but hes building a house that in the end will cost near 400,000 and he has a bankruptcy on his credit. How is he able to do this? im happy for him but im not sure he knows exactly what hes in for? how do mortgage companies look at that? is it because he has a good income that they would allow that?
2007-01-31 06:08:57 · 5 answers · asked by toolate 3 in Business & Finance ➔ Credit
it was about 5 years ago and not a very big one im not sure what chapter but nothing huge
2007-01-31 06:16:28 · update #1
Conventional loan guidelines (in the USA) require at least 4 years (for a chapter 7) from the date of the BK discharge before you can obtain a new "conventional loan". If it was a chapter 13 (repaid, released, and discharged) the period is 2 years before you can obtain "conventional financing".
There are "non-conventional, or sub-prime" loan out there that do not adhere to those restrictions but evaluate his credit by different standards (and usually higher interest rates because of the higher risk factor).
Definitely higher income helps his case, but assets, any down payment, credit scores, existing debts, and loan purpose all play a part in obtaining a loan.
Looking at the total potential cost of financing and the monthly impact is very important for anyone. Don't forget the other monthly costs include home insurance, taxes, and upkeep.
Owning your own home is the greatest, but for most of us it's the largest investment purchase we ever make and we need to find agents that will treat us with integrity and respect.
2007-01-31 06:30:23 · answer #1 · answered by aquaman 3 · 0⤊ 0⤋
Depends on the type of bankruptcy. He may have a bankruptcy on his report from 5 years ago, but that doesn't mean he is overburdened with current debt. If he is making 100K, as long as he has proven to the bank he can handle the loan, they will give it to him.
Since he did get the loan, the only real effect the bankruptcy will have is on the interest rate on the loan. He's probably just paying a point or two higher in interest.
2007-01-31 06:32:43 · answer #2 · answered by dougzinboston 4 · 1⤊ 0⤋
If he's taken care of his credit since then, why not! Five years was a long time ago, there are people getting mortgages 2 years out of BK.
2007-01-31 07:53:05 · answer #3 · answered by Kevin K 3 · 0⤊ 0⤋
First she needs to p.c. (and quickly) if she desires to chop up up or no longer. If she needs a divorce, I quite advise she gets an lawyer asap. the guidelines selection from state to state yet ideally, she could document for divorce and purchase out his proportion of the homestead till now he data financial ruin. If he data first, then the home is an asset and the financial ruin choose ought to probably liquidate the homestead to pay off his lenders. She quite needs to get the divorce complaints in action and get the homestead discovered. If she will stay married, she needs to seek for suggestion from a financial ruin lawyer together with her husband and communicate the strategies.
2016-11-23 17:53:17 · answer #4 · answered by ? 4 · 0⤊ 0⤋
It depends on what type of bankruptcy is was and how long ago it ended.
If it's been quite some time, it shouldn't have any affect.
2007-01-31 06:14:06 · answer #5 · answered by KL 5 · 0⤊ 0⤋