Hi Karen. What happened to the house you had that had a mortgage in bankrtupcy that did not foreclose?Did you sell this house via a traditional sale and payoff the mortgage in full?Or was there a short sale agreement? If so when?Or do you still own the house?Your bankruptcy is old enough to allow for FHA financing, but the final result of the house that had a mortgage named in bankruptcy would tell if you met other seasoning requirements for FHA guidelines.Also, with your bankruptcy 4 years elapsed now, conventional financing could be in play for you as well, particulary since they have a different method of viewing derogatory mortgage related event subsequent to involvement in bankruptcy. You will need to provide more details for anyone to advise if your issues are acceptable to program guidelines.
For FHA loan when there is an employment gap of 6 months of greater, employment must be reestablished for six month to allow the income to be used to qualify. So with 10 month gap and less than six months since returning to work, her income will NOT count toward qualifying on FHA loan. This is not a lender requirement it comes direct from FHA guideline so if you need her income to qualify and cannot qualify for other loan programs you will need to wait until six full months back to work.
HPML is when your APR exceeds an index called APOR by more than 1.5%. When this happens there are additional requirements required for the lender to be able to make the loan. Some FHA loans can become HPML because the APR can include 30 years of mortgage insurance payments. I wouldn't worry too much about if you are otherwise happy with what is proposed.
VA does not allow cash out refinance on free and clear property. Most lenders will allow a work around where you borrow a small amount from anyone and have a lien recorded, then pay off through closing so you are able to meet guidelines.
You meet requirements for FHA financing. Median credit score 580 or better will allow for 3.5% down payment. You will need permission from bankruptcy trustee.Find a lender in your are who offers "TBD" commitment on FHA loan, your application should be looked at and pre-approved by an actual FHA underwriter, anything short of that won't be strong enough for you to proceed confidently. Once you have that in hand, ask your BK attorney what is needed to receive court permission and then go from there. It sounds like you are already doing all the right things to re-establish your credit and open up your options for sound financing. Hope it works out for you.
Pick the highest valued property, find a lender and bring in two years of tax returns with Schedule E.
As Dave indicated it will go off the lower of purchase price or appraiser value for determining PMI. In your scenario with 500,000 appraisal family sale, you could consider a 500,000 sales price and 100,000 gift of equity to result in 400,000 loan amount. This structure will NOT require any PMI. Of course you would need to consult your CPA for any ramifications the gift of equity might cause. If no adverse issues on taxes, then this structure would be optimal for the best financing to buyer.
Near zero chance the sale of your loan has any correlation with your refinance inquiry. Bank of America likely was only servicing your loan doubtful they were the sole owner of an FHA loan and they have been transferring out servicing on a great many loans for several years now. Certainly you will want to explore the conventional vs streamline based on your loan to value and other factors and view a variety of rate and fee combinations to see if paying higher cost makes sense. If you have a bad taste from Bank of America I'm sure you can find a long list of other originators in your area or online that would be happy to review options with you.
Yes the program is available and you can decide for yourself if it is the right financial move. With a large credit card debt, unemployed spouse and presumably no reserve funds since unable to make down payment I'd suggest you wait until you are on more stable ground wih more income and less debt before you purchase a home and have to deal with regular maintenance and other expenses that will arise.
Yes if you otherwise qualify you can refinance and ideally close in advance of the balloon actually being due, if you go more than 30 days beyond the balloon due date then it would be much harder as you would then be more than 30 days late in the contractual obligation.