Can I get a mortgage? Better my credit? (loan, property tax, foreclosures)

[Nancy Lynne]

I would like to buy a house for 500K. I can put 350-400 down. I would need a no doc because I am currently unemployed but have a 20 year track record of very good income --- over 150K. I recently got divorced which for many reasons killed my credit -- was high until a year ago - now very low 600.

I will be able to show that I have funds left over to pay the mortgage with remaining funds for 2 years --- but of course, expect to get a job before then and typically make decent bucks. If not, I can go into biz myself as a marketing consultant.

I sold my house 1 year ago and carried a very high mortgage 700K for 3 years with perfection. Can I get a mortgage for 100-150 based on above?
If not, if I clean up my many late payments ((((not on mortgage tho) (just lazy and sidetracked and emotionally distraught thru the divorce ). No foreclosures. No debts I never paid at all. No bankruptcy.

So again, anybody think I can get a mortgage even if it is a fairly high rate right now....if not, how long will it take to clean up and move up my credit score -- how far back to they look at these last payments - until I can be a good candidate again. Any advice would be greatly appreciated.

Thanks!

[ChipL]

Getting a No Doc loan with a scores in the low 600's is no longer an option....six months ago, yes. Now, no.

Without seeing your credit, the number of lates and when the last ones happened, it's hard to say exactly how long it will all take.

Getting a job will definitely help, as then you may be able to go full doc, which would increase the number of loan programs available to you.

In the meanwhile what you need to do is:
1. No more lates, period.
2. Pay off anything that may have gone into collection.
3. Pay down all credit cards to approx 1/3 of their high limit, if not pay them off totally.

Do that and then take a look at your credit again in about 6 months

Good luck

[InflationNation]

Originally Posted by Nancy Lynne

I would like to buy a house for 500K. I can put 350-400 down. I would need a no doc because I am currently unemployed but have a 20 year track record of very good income --- over 150K. I recently got divorced which for many reasons killed my credit -- was high until a year ago - now very low 600.

I will be able to show that I have funds left over to pay the mortgage with remaining funds for 2 years --- but of course, expect to get a job before then and typically make decent bucks. If not, I can go into biz myself as a marketing consultant.

I sold my house 1 year ago and carried a very high mortgage 700K for 3 years with perfection. Can I get a mortgage for 100-150 based on above?
If not, if I clean up my many late payments ((((not on mortgage tho) (just lazy and sidetracked and emotionally distraught thru the divorce ). No foreclosures. No debts I never paid at all. No bankruptcy.

So again, anybody think I can get a mortgage even if it is a fairly high rate right now....if not, how long will it take to clean up and move up my credit score -- how far back to they look at these last payments - until I can be a good candidate again. Any advice would be greatly appreciated.

Thanks!

This recommendation might sound unorthodox, but with that much cash available to you I would personally sit on the fence for about a year or two and watch property values plummet, then pay cash for a house. Put that money (100K, limit on FDIC) in a CD and rest in some safe investment such as short term govt. bonds and interest bearing account in Euros, convert back on what is becoming a sinking dollar and reap the reward of NO MORTGAGE.

Get your ducks in a row now. Get employed. Save, sacrifice for a little bit, then...own free and clear.

People are ALREADY taking 100K haircuts (or higher) in some parts of the country. Why go through the hassle of paying big fees and worrying about qualification for a mortgage? Just rent for a year or two.

I would only mortgage for a house right now if I was going to stay in the place for 10 years minimum and didn't have 60% of the purchase price in cash.

[Nancy Lynne]

I kinda knew the answer was a big fat no.

I think I will continue the rent route, although it is not "comfortable" renting, but the market is tanking here in NJ and as you said, if I invest my funds and just sit a while...that is probably my best bet.

Only downside is the rents here are so high. I live in a town ----well, my rent is $2300 for a small ranch plus utilities. Ughhh.

However, owning a house around here --- the property taxes alone are around 10K for a 400-500 house -- so I guess if you put that all together, I hope I am still ahead.

Thanks again for your advice. Any other tidbits you could offer are appreciated.