Do I carry any weight on getting new mortgage? (loan, foreclosure, credit)
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My husband and I finished a deed in lieu last February (we actually had to be out my end of October, 2010, but process didnt finish until February). The mortgage/loan and all info was only in my husbands name bc when we bought I did not have very good credit. We have been working to pay off all debt..I work very part-time, making only about 800-1000/month, but have wonderful credit right now. Any idea when we might be able to get another mortgage considering the nick in my husbands credit? Does my credit, but limited income, help AT ALL? I would also be considered the, a first time home buyer.
My husband and I finished a deed in lieu last February (we actually had to be out my end of October, 2010, but process didnt finish until February). The mortgage/loan and all info was only in my husbands name bc when we bought I did not have very good credit. We have been working to pay off all debt..I work very part-time, making only about 800-1000/month, but have wonderful credit right now. Any idea when we might be able to get another mortgage considering the nick in my husbands credit? Does my credit, but limited income, help AT ALL? I would also be considered the, a first time home buyer.
The deed in lieu of foreclosure is a lot more than a "nick" in your husband's credit. It is the equivalent of foreclosure which is about as big of hit as there is in the credit world.
You would not be considered a first time home buyer. You would have to qualify on your income alone at this point. Typically 3-4 years before your husband could be used in qualifying again (in which case you would both be considered 1st time home buyers at that point).
My husband and I finished a deed in lieu last February (we actually had to be out my end of October, 2010, but process didnt finish until February). The mortgage/loan and all info was only in my husbands name bc when we bought I did not have very good credit. We have been working to pay off all debt..I work very part-time, making only about 800-1000/month, but have wonderful credit right now. Any idea when we might be able to get another mortgage considering the nick in my husbands credit? Does my credit, but limited income, help AT ALL? I would also be considered the, a first time home buyer.
Why is there such a rush to buy, considering that you just did a deed in lieu? There is nothing wrong with renting while you repair your financial situation.
I agree, IN MOST CASES, a deed in lieu is really just faster than a foreclosure, not really any different credit wise, except that it lets you start rebuilding your credit sooner, because the process is over sooner. However, I did receive a brochure from a local lender this week that says that if you want to get a Fannie Mae loan, they are treating a DIL more like a short sale, and that if you can come up with a decent down payment, they are letting people do the loans sooner. A foreclosure says "7 years after a prior foreclosure to be eligible for a new mortgage loan eligible for sale to Fannie Mae, unless the foreclosure was the result of documented extenuating circumstances, which only requires a 3 year waiting period (with additional requirements)" No idea what they classify as extenuating circumstances, or what the additional requirements are. But for DIL and Short sales, they say "2 years - 80% max LTV ratios, 4 years - 90% max LTV ratios, Greater LTVs can require up to 7 years".
If you qualify for a VA loan, they are saying 2 years for either foreclosure or short sale. FHA is more like 3 years.
So it varies a lot from loan type to loan type (for the new loan, not the old one).
As for doing something sooner than that, there have been some programs in the past that let one spouse buy without the other one, sounds like your husband bought your last house sole and separate. I own my house without my husband's name on any of the paperwork for the same reason, his credit wasn't very good at the time. But my understanding is that many of those programs have gone away over the intervening years. Even if you could find one that would only look at your credit, they would also only look at your income, so you wouldn't qualify for much.
And finally, like TimtheGuy said, you very probably wouldn't qualify as a first time homebuyer, because they usually look at it that if either spouse has owned in the last 3 years, neither spouse qualifies as a first timer (even if you weren't married at the time the other spouse owned, which you were)
Your good credit and your income will both help when you can once again qualify to buy, but right now, you are probably looking at at least another year, and probably another 2 years.
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