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My wife filed for bankruptcy in 2003 due to a divorce. It's due to be removed in about 2 years but we are ready to buy (maybe). My credit score is excellent (~800) and hers is excellent even with her bankruptcy (~750). We've worked very hard to repair her score. We both have very steady jobs (over 3 years each) and enough income to pay for a mortgage in our area. We have 0 debt besides my ~$100/month student loan payment. Both cars are paid for. Insurance is paid yearly. We are prepared to put down roughly 10% so I'm assuming we'd have to go FHA?
My questions:
1. How much will her bankruptcy 8 years ago affect us now despite her now repaired credit? Should we even bother now, or should we wait 2 years until it's removed?
2. Based on the above, what type of loan should we try for (traditional, FHA, etc...)?
if you can only put down 10% or less and never own a home within last 3 years... i suggest you go through any first time home buyer program which requires less downpayment and lower rates than FHA and no PMI.. go to your city website and call a few banks and ask them. gl
if you can only put down 10% or less and never own a home within last 3 years... i suggest you go through any first time home buyer program which requires less downpayment and lower rates than FHA and no PMI.. go to your city website and call a few banks and ask them. gl
Thanks for the advice, I'll look into programs for California.
Call a mortgage broker. They can look at both your credit scores and your income to help you understand whether you qualify for a mortgage, and what type of mortgage would be least expensive. Conventional loans are starting to require less $$ down, so that might also be an option for you.
I searched all over LA county and state of CA websites but couldn't find any programs for first time buyers like myself. I found a few but we are disqualified due to income.
I searched all over LA county and state of CA websites but couldn't find any programs for first time buyers like myself. I found a few but we are disqualified due to income.
Hi ZenMaster,
You don't need a state/county first time home buyer program, these are typically for folks that need down payment assistance. What you need to do is have lender run a scenario for you comparing FHA to Conventional so yu can decide which option makes the most sense for you and your family.
FHA only requires a 2 year "wait" from the discharge of your BK while conventional requires 4 years.
Depending on how the 2 compare (rate, closing costs and monthly payment) and your short/long term goals you may want to go with the lowest down payment option for the sake of liquidity.
My ex has filed a bankruptcy in 2002, which is now discharged but still shows up on my credit. But I don't think it's affecting the score, just there for information under "public records".
Besides, your scores ARE great, so you should be able to get a loan just fine, only, like someone said, might be better off with some first-buyer program if you can find any.
Good luck!!
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