- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Replies (15)
- frank1003
- Contributions:266
I love it. You've rebounded from bankruptcy to a 717 credit score in 2 years and you're worried about an inquiry possibly damaging your credit? Let's look at this further, shall we. Bankrupt 2 years ago, and have not only rebounded to a 717, but managed to save $10,000, have $35,000 in retirement funds, no gap in employment (which makes one ponder the bankruptcy) all while only earning a salary of $60,000 per year (in the same industry with no gap in employment) while paying $1,377/month in rent and want to buy a house in Oakland because it would be cheaper than $1,377 per month. I can't wait to see the responses to this one from the brain surgeons here.
- rob_arch
- Contributions:6
Um, thanks for your critical response. When I filed for bankruptcy in mid-2005, I was working only part-time and I was going to school full-time. Credit cards got the best of me and I could not keep up. The BKO allowed me to recover from that. Since the BKO I have developed good habits and I am hoping to not only save on my monthly expenses by buying a house but also build equity in something for the future and have a place that I can renovate and do with as I please (rather than being stuck with white walls, no pets allowed, etc).
- frank1003
- Contributions:266
OK. So while working part time and going to school full time, you managed to save $10,000, amass a 401-k of $35,000 (while a full time student???) after filing bankruptcy and want to save money by buying something you can't afford so you can have a dog and colorful walls? By the way, what the f*&%k is a BKO? I take it you didn't study finance while in school full time working part time, saving $10,000 and amassing a $35,000 401-k while filing bankruptcy and contemplating buying real estate in California. I'm also not convinced this is a legitimate situation that you pose for discussion.
- Mr. Bubbles
- Contributions:121
I'm not sure if there's room for my guess and Frank's pedestal, but I'll try to shoehorn it in here.
My *guess* is that you would qualify but pay a higher interest rate. I'm sure the lender would require a letter of explanation for the bankruptcy, and you'd undoubtedly have to jump through a bunch of hoops, but knowing that you can't file again for (7 more years?), you'd probably get approved.
Please note, my opinion is worth next to nothing- which is to say, about twice what Frank's opinion is worth.
Good luck!
- Carl Henker, "Carl Henker"
- Contributions:755
Check into an FHA loan due to the BK and your limited funds for down. FHA only needs 3%. Expect your payments to be much higher than your rent. What are home prices in your area?
Good Luck
- frank1003
- Contributions:266
Mr. Bubbles, you've said a mouthful. Neither one of our opinions mean a darn thing since the question posed is not worth a legitimate answer. Think about it.
- rob_arch
- Contributions:6
When I filed BKO I was working part-time and going to school full-time (that was 2005), but for the past 2.5 years I have been working full=time and spending minimally and saving as much as possible. Yes, I know the credit card thing was a big mistake and the BKO it is entirely my fault but I learned my lesson and I will not let that happen again -- I was a colllege student in my early 20s at the time. Now I am serious about things... there are houses around 150k that I am interested in and I seriously think I should take a look and make an offer but I want to know how realistic that possibility is.
Rob.
You
Rob
srry.
rob
v
- Martin Wareing, "Martin Wareing"
- Contributions:3772
Rob,
Be patient in SF... The housing market will continue to cheapen.. You just stated that you went through a financial epiphany. If you have changed your financial ways that is great as well, but re-read your request and you are basically asking the "crack dealers" for crack within 2 years of getting out of REHAB. What I mean by that is 1) leverage got you into trouble... declared "BK" as we use the acronym. 2) You are asking for maximum leverage immediately. Kudos to the saving... the 401K...etc.. , but personally and I say this... personally.. I think you should wait... save at least 20% of the sales price of what you want to buy.... make sure that leverage never gets you again. Frank may seem brash, but he and I (we don't know each other and live on opposite sides of US) have been in this business for over 40 years. Regardless fo tone... neither of us would recommend a loan for you at this time. I am sure you want to hear a "YES" so there are some that will say "the guidelines fit" the guidelines fit", but you are not ready for a home yet and the value of that home will be 5-10% less as this thing plays out in our country... Be careful what you wish for as it might just come true and for the sake here... you get your loan.... burn all of your liquid assets....... (not 401K)... have a re-roof, A/C... remodel, etc... or worse a MOVE within 2 years... price falls 5% realtor and other C/C 7%... you sell it for what you paid for and....... another SHORT SALE in the system and all you looked to repari since 2005 is gonea again..... My advice is to be careful and very protective of your assets (liquid and credit) going forward. Good luck ot you.
- Andrew Adams, "203K Specialist"
- Contributions:9349
If a mortgage will cost the same as renting I don't see any thing wrong with not waiting till you have 20%. But (always a but) you absolutely need to have reserve funds, houses need to be maintained and things break unexpectidly. When you walk into the basement and realize that you have an inch of water on the floor you won't be able to take a hot shower until you replace the hot water heater, that will run you $500 plus, and could happen the first night you are in the new house. You will wish you had a reserve fund to draw on, if not the credit cards start climbing up and you are back on the road to ruin.
- Mr. Bubbles
- Contributions:121
In my opinion, the only atypical risk in this scenario is the risk of depreciation because of an ugly market, and perhaps personal financial recidivism on the part of Rob. Financially, it doesn't look like a risk to me, at least in terms of DTI. His PITI would still be lower than his rent. His income is >3x his income.
Can I qualify for a mortgage 2.5 years after bankruptcy?
So it has suddenly become affordable again in the Bay Area (if I consider REOs of course) and I would like to buy a place. It looks like it would actually be cheaper to buy a small house in Oakland than to continue renting (at 1377/month). However, I filed bankruptcy and it was discharged in 2005. Since then I have had great payment history, and my FICO score is 717. I have about 10k in savings in the bank, and about 35k in retirement savings (IRA and 401k). I am currently making 60k per year in a job I just started 2 weeks ago (there was no gap between this job and the previous job, which was in the same industry) and the only debt I have is student loans (166/month). I am reluctant to go to a mortgage broker yet, because the first thing they will want to do is pull my credit report, which I understand will hurt my score in the long run. Can anyone offer any advice or feedback? Thanks!
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.