Can we get another Loan with our history?

Question

My husband and I are having to relocate due to his job moving . We have a house that we owe 115,000.00 on and a 25,000.00 second morgage. It has the VA Loan guarentee on it as well. We have a 2.5 yr old bankruptcy it was done before the law was changed so we kept our home. We have owned this place for 7 years. We would not be able to keep the house if he was to take the severance package as the town we live in is limited in the jobs that he could take. Our payments are currnently 970.00 for the first and 300.00 for the second.

Is there a way to get rid of this house somehow and be able to qualify for another fixed rate loan with the VA guarentee? We have 2 kids and one on the way. We also have three dogs and 4 cats that we would like to keep as they are all very old.

Please help!

HELP!

We can pay the loan we just cannot live in Nebraska and him work in Ohio.

we borrowed 125% of the homes value. Current valuse is closer to 122,000.00 though.

Answer 1

It can depend on your credit score and new job.
To get rid of the house you would need to sell it.

If you're goin to do the VA loan you will need to pay around a 3% FUNDING fee....the FHA is currently at 1.5%.

Even if you werent entitled to a new VA loan..you can still do FHA if your BK was discharged over 2yrs ago.

You can apply for the new home, but either way i would put your house on the market and sell it!

Answer 2

I hate to say this, but you really screwed yourselves with the financing on your old house. Borrowing 125% of the value was a CRITICAL error. Now you know why. You can't sell the house for as much as you owe and that is going to crush your ability to move.

A critical distinction for you right now is whether you originally borrowed 115,000 and 25,000 or if you currently owe 115,000 and 25,000 on the mortgages. If you currently owe that much you are in trouble. Say you list the house at $122,000. When you sell you will have a realtor's commission to pay and closing costs netting you somewhere around $113,000 which isn't enough to pay those loans off. Although it's not likely, if you had the cash to contribute so that you can sell the house and satisfy the mortgages then you might be in position to get a new loan.

If those were the original balances then you might have enough equity to make selling at that price a little more palatable, but you won't be taking any money with you. You are going to be very hard pressed to get any kind of loan without getting rid of your current house.

I don't envy your position. Good luck!


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Answer 3

Can you sell the house? Or do you owe more than the current market value? If you can't sell, can you rent it out?

Before you can qualify for another VA loan, you have to sell the house. That's pretty much it.

You are also going to find it very difficult to find a place to rent with all those animals. Finding places that will allow one pet can be tough and they want non-refundable pet deposits. With 7 pets .....

Answer 4

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Answer 5

You will have to sell the home t be able to use VA again.
First, contact realtor to see what your selling optionswill be.

The BK is old enough that you should be able to get another VA loan if your credit has been clean since.

Answer 6

i think i will not qualify you for another loan. unless you can show me a sure way that you can pay it. -ex banker (loan division)