Profile picture for SarahCramer

Can we qualify for a mortgage?

Hi and thanks for reading :) My husband and I are considering buying our first home and are wondering if we can obtain a mortgage.....we are apprehensive about applying because we're afraid of rejection! Here are our stats - the mortgage will be only in my husband's name:

- $40k annual salary
- $18k savings (but would like to keep down payment $15k or less)
- 651 FICO score
- Looking for homes in the ~$100k range, so borrowing ~$85k
- Husband declared bankruptcy in 2002 but it is scheduled to be removed from his credit reports 9/2012
- No credit card/auto/student loan debt

Is this possible based on his low credit score? We are not looking for a huge mortgage and we have the cash for a down payment so we're hoping that maybe we'll qualify for an FHA loan...can someone help us? Thanks so much!
  • March 09 2012 - North Valleys
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Answers (4)

Best Answer

I'd say you have a good chance of qualifying, and you may even look into the NV Rural Bond program for first time homebuyers, depending on where you want to buy. Talk to an experienced Realtor and get their lender referrals.

As for getting rejected, that really shouldn't be a concern. It's more like getting free financial advice. There's no risk in applying, and even if the lender says that you cannot qualify right now, they should be able to give you a checklist of things to do to get yourselves qualified. The only thing you should be wary of is qualifying for a 'bad' loan. What I mean is that if the lender has to get really creative to qualify you, or if you have to pay an exorbitant interest rate or exceptionally high fees, that may actually offset the benefits of home ownership. If thats the case, try a different lender or perhaps don't buy until you can get a more traditional loan that makes more financial sense. Not trying to scare you, but I caution you about being so eager to buy a home that you get into an obligation that's not right for you.

Good luck!
Jim Elliott

  • March 10 2012
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Sarah Cramer From what you have stated I think you would qualify. I have a great lender that I hsve worked with for over 12years. Her name is Dorothy Reynolds. She can talk with you and let you know where you stand. I am restricted from giving you her information in this post so just contact me and I will get her contact information to you. There are some great properties available in the current market. Thank You Suzie Marquardt
  • March 10 2012
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You shouldn't have a problem getting an FHA mortgage as long as you have re-established good credit since the bankruptcy.  You should definitely apply for your loan because rates and prices are low.  FHA PMI increases on 4/9/12 also.
  • March 10 2012
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Profile picture for Sharon Lewis
You are such a cute couple and congratulations on trying to buy a home. Don't worry about 'rejection' Simply call a local realtor and ask for several referrals for local lenders, pick up the phone, tell them what you want and ask what your chances are.You might be surprised.
  • March 10 2012
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