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Possible way to get mortgage after bankruptcy

The last post in this topic was posted 1103 days ago. 

 

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Our bankruptcy discharged 3/2017 so I know we have to wait at least 2 years before getting a new mortgage. Fast forward to now my job moved us to a new area and we are renting. Our lease is up at the end of April and we found out we are pregnant with our first.

 

We need to find a new place as this is not the best apartment for a new baby but also am not looking to move multiple times. We live in Florida where rent and mortgage is similar so I would love to find a new home sooner than later.

 

I KNOW we (husband and I) cannot qualify yet even if our scores are good. My mother is planning on moving to Fl from NY but not sure when and would help us out if needed.

 

My question is (right now just looking at options). Could we get a mortgage with her as a cosigner? If not could she get the mortgage and we buy it from her when we qualify? Are there other options? Just wondering what the right path to look into is. If we are not able to buy we would look to rent a house but again would hate to have to move again and again. If we weren't expecting in August we would have just waited out the 2-3 years.

 

Thank you.

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Our bankruptcy discharged 3/2017 so I know we have to wait at least 2 years before getting a new mortgage. Fast forward to now my job moved us to a new area and we are renting. Our lease is up at the end of April and we found out we are pregnant with our first.

 

We need to find a new place as this is not the best apartment for a new baby but also am not looking to move multiple times. We live in Florida where rent and mortgage is similar so I would love to find a new home sooner than later.

 

I KNOW we (husband and I) cannot qualify yet even if our scores are good. My mother is planning on moving to Fl from NY but not sure when and would help us out if needed.

 

My question is (right now just looking at options). Could we get a mortgage with her as a cosigner? If not could she get the mortgage and we buy it from her when we qualify? Are there other options? Just wondering what the right path to look into is. If we are not able to buy we would look to rent a house but again would hate to have to move again and again. If we weren't expecting in August we would have just waited out the 2-3 years.

 

Thank you.

 

In reverse order of what I highlighted, if your mother is the only one on the mortgage, no lender is going to care if you live there. Is she going to live with you?

 

As far as your current apartment, what isn't suitable for a new baby? All they really need is a crib in the corner of your bedroom for at least the first year and a half.

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Just mold. It's fixable but not a place I want to renew with a baby. Also we went from a house so paying storage as well. May need to rent a house for more space.

 

My mother wouldn't be living in the house maybe staying with us for a while but she wants a small condo when she eventually moves to Florida.

 

Was thinking more along the lines of she can buy it and we can rent from her until we qualify and then buy it from her or if it will be possible to be co-signers but I just feel like that might be a hassle to get her off the loan eventually not sure what the best way is for her.

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Just mold. It's fixable but not a place I want to renew with a baby. Also we went from a house so paying storage as well. May need to rent a house for more space.

 

My mother wouldn't be living in the house maybe staying with us for a while but she wants a small condo when she eventually moves to Florida.

 

Was thinking more along the lines of she can buy it and we can rent from her until we qualify and then buy it from her or if it will be possible to be co-signers but I just feel like that might be a hassle to get her off the loan eventually not sure what the best way is for her.

 

Well, if your mother buys the place and you rent it from her, your creditworthiness isn't important.

 

When you are ready to take on the mortgage on your own, she'd just sell it to you without a REALTOR®, and the title company (or closing attorney, depending on where you're located) would handle the transfer.

 

Before you do any of this, pay a CPA for a couple of hours of time to understand any tax implications for you and/or your mother for when the sale occurs.

Edited by cv91915

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Did you file a 7 or a 13 bankruptcy? My wife and I are/were in your exact shoes.. Our 13 discharged in March. There are mortgage companies out there that will lend with a freshly discharged chapter 13. I spent several hours one day calling just about every mortgage company in my city and I found a few that would lend to us as well as a few companies out of state. So, they are out there, you just have to take the time and have the patience to call around. In the end we decided to wait as the housing market where we live is a sellers market. Buyers are in bidding wars and bidding 10K + over asking price. Fast forward to November, our landlord decided to sell all her properties and move to another state. She gave us first rights to buy her house. She was very generous and is selling at 10k under market value to us. I pulled out my list of companies again and contacted one of the out of state ones and we close on the house Jan 18th. So it can be done with less than a year after discharge in a chapter 13.

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A little off the subject of the mortgage question but when factoring rent vs ownership in Florida.

 

I would also add something worth considering, that you may or may not know, is that if she’s not living there(new house) she will not get the homestead Exemption for property taxes in Florida which is generally $50k and an extra $25k if she is over 65.(in most places in Florida I believe) Also any new sale, property taxes will be to the new market value so if the house you purchase hasn’t been sold in many years there could be a significant rise in the taxes from owner to new buyer. Ex. I brought a house in Seminole for $375k that had not been sold since 1997. Old owner taxes with the homestead Exemption and the senior exemption was $2300/year because purchase price then was $150k. Now that I bought it at $375k and only qualify for the $50k Homestead Exemption, my taxes bill is $5300/year. Obviously without the Homestead Exemption it would be even higher. So depending on what your household income is, this can be a big cut into your monthly budget with the added Florida homeowners insurance that may/may not need flood.

 

Figured I’d tell you that because I was in for a bit of a shock when I found out what my tax bill was going to be and did not consider that extra expense in my budgeting. Luckily I make enough it doesn’t effect me much other than irritating because I am ocd about my budget.

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If you filed a Chapter 13 BK, you can secure FHA or VA financing 24 months after filing assuming you meet all other criteria necessary to secure financing.

 

 

Best Regards,

 

Dmitriy Bleynis

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As stated your mother could possibly buy and rent to you - you could even enter into a lease to own type agreement - later you could refi and pay her off transferring title at that time

To do this she would need to qualify on her own - you could not include your income - if she has the income and assets to qualify then it isnt a problem - keep in mind that if she were to try and buy or obtain further credit this would be considered a liability against her -

 

Hope this helps

B

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If you filed a Chapter 13 BK, you can secure FHA or VA financing 24 months after filing assuming you meet all other criteria necessary to secure financing.

 

 

Best Regards,

 

Dmitriy Bleynis

 

Not true. You can secure FHA or VA financing 12 months not 24 after filing a chapter 13 BK as long as you meet the rest of the requirements

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