Bankruptcy (loan, credit score, second mortgage, refinance)

[marilynn1971]

Hello all,
I have a few questions. I moved from CT to FL.
My husband and I ended up having a hard-Ship and
ended up filing chapter-7 bankruptcy. My husband is
disabled and receives social security and I work full-time.
I was told you could apply for a mortgage after 2 yrs or even sooner
after filing chapter 7.
We are currently renting and want to purchase
a home in CT. How much of a down payment (percentage)
Is required? What would my credit score need to be?
Also are there any programs to help with a down payment?
This would be my first home. Anyone that can help me with questions
It would be much appreciated.

Marilynn

[Pfhtex]

You either need a 3.5% down payment (plus Taxes/Title/closing costs if the seller does not pay them), for the best FHA terms available (minimum score will vary, but if your mid-fico is below 620 you will see higher rates.)

Or you could do a zero-down FHA loan with the down payment being either 1) a Grant, or 2) a re-payable second mortgage. Which one would be determined by your Income and Average Median Income in the home's location.

It looks like you would likely qualify for the Grant program. Any good lender will help you get your scores in position, whether that takes a week or months.

[marilynn1971]

Thanks so much for the info Pfhtex. Even if I live in Fl and I am wanting to purchase a
House in CT, would that be considered a vacation home? Then if that is the case
I would have to put down more than 3.5 percent? Am I correct in saying that?

[Pfhtex]

Originally Posted by marilynn1971

Thanks so much for the info Pfhtex. Even if I live in Fl and I am wanting to purchase a
House in CT, would that be considered a vacation home? Then if that is the case
I would have to put down more than 3.5 percent? Am I correct in saying that?

Ahhh - No Second Homes, Investment Properties, etc.

You can only do a Primary Residence at the 2-year mark.

Sorry, I should have noticed that in your first post and asked for clarification.

[marilynn1971]

Oh really? Do you know how long the waiting period would
be after a bankruptcy? See we plan on going back to CT and that would be
our primary residence. Probably within a year. Do you know of any programs
that may help my husband who is on social security do it on his own?

Thanks in advance.

[Pfhtex]

4 years.

There are programs that would allow you to purchase a second home now. Rates in the 7%s-8%s. I typically don't advise that unless you are in LOVE with a property and might plan to refinance after the 4-year mark.

[marilynn1971]

Well thank you so much for all of your help. I have a lot to think about.
Happy Newyear!

[TimtheGuy]

Originally Posted by marilynn1971

Oh really? Do you know how long the waiting period would
be after a bankruptcy? See we plan on going back to CT and that would be
our primary residence. Probably within a year. Do you know of any programs
that may help my husband who is on social security do it on his own?

Thanks in advance.

So you are a 1st time homebuyer, recently filed Chap 7, have minimum down, have a husband on disability and you are considering burdening yourself with two house payments for a year?? Seems like a terrible idea on the surface.

[charlygal]

Originally Posted by marilynn1971

Thanks so much for the info Pfhtex. Even if I live in Fl and I am wanting to purchase a
House in CT, would that be considered a vacation home? Then if that is the case
I would have to put down more than 3.5 percent? Am I correct in saying that?

Check into NACA. It's no down payment, no closing costs. If you make less than the median income for your area, you can live anywhere in your area as long as you can afford the house. If you make more than the MSA median, you will be limited to living in areas that are at/below the MSA median.

There could also be state housing grants for down payment assistance. Google this for your area.

[Pfhtex]

NACA requires that you live in your home for as long as you have your NACA Mortgage.