Hello,

I had bankruptcy and recently discharged on December 2008. Right now I don’t have any loans except for 1 credit card that I obtained to rebuild my credit. I’m only using 30% and paying it off every month.

My monthly income is 00 after tax, and I’m able to save 0-500 per month.

There are 3 of us considering to buy a home, my mother, fiance’ and I. My mom also have a bad credit but no bankruptcy. My fiance’ has good credit, let say about 650-670 credit score.

We are just looking for a small house price ranging from 100K to 150K.

Right now we are paying rent for $ 800 per month on time without struggling. My mom started renting the same house 2 years ago and on December 2008, my fiance’ and I move with my mom to help her to pay rent.

I just thought that if we can pay 0 per month, why not get a mortgage for 0.

Is it possible for us to get a home now or I have to wait a year or more to re-establish my credit?

By the way I had my credit card on Febuary ’09 and I have a student loan that will be paid off on April 09. The student loan was on repayment plan since January 09. So I guess that will help to rebuild my credit history from January 2009?

Any suggestions will greatly appreciated.

5 Responses to “Am I able to buy a home with my situation right now?”

1. Lisa A Says:
   January 1st, 2011 at 9:17 am

   No possible way. You declared bankruptcy and stiffed all of your creditors just 4 months ago??? Why would another creditor lend you money? Why would they expect anything other than being stiffed by you?

2. Reena Says:
   January 1st, 2011 at 9:17 am

   Sorry… but your bankruptcy is too recent.
   It takes years before you can re-enter into the world of big loans, etc.

   For the next 3 to 4 years… stay in the house with your mother.
   $800 rent is very reasonable for 3 people and should give you plenty of opportunity to save money.

   To be able to get a mortgage:

   You need a FICO score that is in the 750′s and up and it should take you about 3 to 4 years of using your credit card very wisely to get back to this level. (Stay with the 30% limit per billing cycle… you are doing fine, if you want to speed it up only use 10% of the card’s limit and pay off in full every month).

   You need up to 20% down payment for the house. That means if you are looking at a 100K house you need $20K and then you can get a mortgage for the rest. Besides the down payment you need at least another $5000 to $7000 for closing cost, and a bunch of other costs that come along with buying a house.

   But you have 3 to 4 years to rebuild your credit, save up as much money as you can and by then you should be able to get back into the business.

   Do not buy a car…. you don’t want a car loan or large credit card debt on your credit report when you apply for a mortgage.

3. Just say no! Says:
   January 1st, 2011 at 9:17 am

   With your limited new credit it’s unlikely. Keep your credit straight, get new lines–car, credit cards, and in approximately 2 years you might quality for an FHA loan. I don’t agree with the poster below. I was discharged inJune 2006 and purchased/closed on a new home 8/08. 2 years after—I purchased a car in 2006 –so that I had a couple of years paying for it–and had a variety of credit lines. I did NOT have to put down 20% –3% with FHA. It can be done–just NOT right now and BTW my credit score was in the 660s-680′s NOT 700+ as listed below.

4. rhettmen2724 Says:
   January 1st, 2011 at 9:17 am

   YES YOU CAN

5. 9Fraulein Says:
   January 1st, 2011 at 9:17 am

   Go to a mortgage lender, like your bank or credit union, and see if you will get pre-qualified, although it’s not a for sure promise, it might give you a good idea. Don’t finance a car if you are planning to buy a house soon, because the monthly payment on the car loan will lower what you can pay monthly for a mortgate. Maybe buy a cheap car and finance only a couple of years then buy a house after that.

Leave a Reply

Name (required)

Mail (will not be published) (required)

Website

Comments

Type the numbers you see in the picture below: