lynn71 Posted December 31, 2024 Share Posted December 31, 2024 Hello and Happy New Year.... I am hoping to purchase a home with low to no money down very soon and want to know if it's possible, and where should I look. My situation requires me to move as soon as possible. I live in WNC (Asheville, in a severely impacted zipcode) that was affected by Hurricane Helene. Originally FEMA awarded me temporary hotel vouchers and wanted me to apply for additional help due to our neighborhood. I declined because although my house has mold and my environment is compromised, I do still in fact have a home and do not want to take away from the resources of much needier families. My company is working with me to transfer me out of state, to Michigan, so local help that's available is just for that - staying within NC. I have a bankruptcy that resulted from my husband becoming disabled with MS, so provable . After he became disabled he could not get Medicare for two years which resulted in a lot of medical bills that we used my credit cards to pay for which led to my debt that I filed the bankruptcy for. Since then (discharge Sept 2022) I have worked hard at repairing my credit and have a credit score of 705-720. I could come up with up to 2-3% if I needed to from a gift. My husband also receives $1500 a month for his social security, but he did not file bankruptcy and has medical bills from 5-7 years ago on his credit report. Would I even be able to use his income if I don't put him on the mortgage? I also have had decades of steady employment but did change careers 9 months ago. I was making over $70k in a medical career and left it for a job paying 42k. This was for my own mental health after COVID and my quality of life. I just don't know what it's going to look like to a mortgage broker. I've taken the homebuyer's course Fannie Mae's Homeview and have the certificate of completion from it, which seems to be required for FHA Michigan loans. I want to know if there are any special programs that could help me relocate, or just any agent good with working with unique, and desperate at this point, situations. I need guidance and someone knowledgeable. Thank you in advance. Quote Link to comment Share on other sites More sharing options...
Admin MarvBear Posted January 3 Admin Share Posted January 3 Welcome to CreditBoards. Glad you found us, and I apologize for taking so long to approve your post. Quote Link to comment Share on other sites More sharing options...
liverichly Posted January 4 Share Posted January 4 Hi Lynn, USDA mortgages are 100% financing, but require you to buy in a rural area. https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do is the website to search for eligible areas, or you can always reach out to a mortgage loan officer and they can look up where the eligible areas near where you want to buy are. Anyplace on the below map that isn't shaded in orange is an eligible area.. If you want to buy in one of the orange shaded areas then FHA financing can be obtained with just a 3.5% down payment + there are down payment assistance programs that can cover the entire 3.5% down (even some assistance programs that will give you money towards the closing costs too, although at this time of year sellers are usually willing to pay those for you). Both USDA and FHA financing will be OK with the amount of time since your BK discharge. You can only use the income from people who will be on the mortgage, but both USDA and FHA financing work with lower credit scores, so there is a chance he might be able to go on the loan and then his income could help you qualify. In order use your current $42k/year of income to qualify to buy a home in Michigan the income must continue after you move to Michigan, so if it's a remote/work from home position that is perfect. If you have to work at a physical office then they'd need to transfer you to a local office within commuting distance of the new home you'd be buying. The counseling education certificate from Fannie Mae HomeView isn't required for FHA or USDA financing but it looks good to an underwriter, so you'll want to provide that to the loan officer you eventually select to help you out. Quote Link to comment Share on other sites More sharing options...
lynn71 Posted January 4 Author Share Posted January 4 Thank you for the reply. I should have added that my company is willing to transfer me to the Grand Rapids area and I will receive a 2% raise. It looks like the orange area (some) is in a commutable distance from where I will be working (Byron Center). Finding a decent house in an affordable price range is an issue though. We currently pay $1400 in rent and have an impeccable rental history. We have two sons who also want to make the move with us. They are in their early 20's and due to the devastation and what we went through here neither of them want to stay in their hometown. Either of them would also be willing to co-sign for the higher income. One has a credit score of 800, but he's only had his job for a year. The other son has an income of around 52k, and steady employment for 5 years, but has no credit (despite us telling him how important it is). Not sure if either of them would be an asset to helping me with this. I would be interested in any down payment assistance too. I found generic list online but when the auto system ask for my current zip code, the system tells me that there isn't anything available for me at this time. One of the questions is also, "have you filed bk within the past 3 years" to which my answer is yes, because it hasn't quite been 3 years. So I'm not sure if it's also that question that is throwing me out of eligibility on the tool I am using. What is the best way to find a person to help me navigate this? My only thought is to just start searching the web, but I want someone who would know if I could also qualify for help leaving a disaster area that according to FEMA will impact my life for about 5 years, or just knowledgeable to all the grants that we may be eligible for assistance. Quote Link to comment Share on other sites More sharing options...
Why Chat Posted January 4 Share Posted January 4 I suggest you get your and your husband's credit reports cleaned up to get rid of the old medical accounts; Follow this guide https://whychat.me/GUIDEBOOK.html Apply for a mortgage under your husband's name, there are likely many more no down payment low interest and home buyer's assistance programs available for him both State and Federal Quote Link to comment Share on other sites More sharing options...
liverichly Posted January 5 Share Posted January 5 Thank you for the additional info and sharing more about your situation. It sounds like you’re doing a lot of things right. Regarding relocation assistance, while I can’t speak to every program out there, there are sometimes grants or financial assistance options for individuals relocating due to disasters. FEMA’s programs are often tied to staying within the affected state, but some nonprofit organizations or state-level housing authorities might offer broader assistance. It may be worth reaching out to the Michigan State Housing Development Authority (MSHDA) to see if they have programs for incoming buyers who have been displaced from disaster areas. For down payment assistance MSHDA is a key resource and I believe their programs would be OK with the BK seasoning. MSHDA isn't the only down payment assistance program though, just one of the better ones for the state of Michigan, and it requires your household income be within a certain level. There are national down payment assistance programs that don't require income to be within certain levels though. Your sons could also potentially help. The son with an 800 credit score could co-sign if he can document at least 1 year of schooling prior to his employment. The son with a steady income of $52,000 could help as well, and he can immediately obtain a credit score by becoming an authorized user on your credit card that has at least 6 months of history. With your planned transfer to Grand Rapids and the accompanying raise, your income will qualify as long as you can get a transfer letter stating all of the specifics (transfer date, new location, job title, rate of pay). If either of your sons are relocating away from their place of employment, their income would also need to continue afterwards as well. Since you’re open to living near Byron Center, USDA financing could still be a great choice if you find a property in an eligible area, which Byron Center is but as soon as you go north towards Grand Rapids it changes to an ineligible area. FHA loans, with their 3.5% down payment requirement (or covered through down payment assistance or a gift), is a good backup option. Finding a real estate agent familiar with Grand Rapids and its surrounding areas could help, as they can often connect you with trusted loan officers. Look for professionals who are responsive and take the time to educate you about your options. Hope this information helps. Feel free to reach out with additional questions. Quote Link to comment Share on other sites More sharing options...
lynn71 Posted January 6 Author Share Posted January 6 Thank you both for your replies. I found an assistance program in Michigan called Family Opportunity Mortgage Program that may be able to help, and I will be calling them on Monday. They were just the first program I came across for with help for caretakers and families of someone disabled. We had been planning this move to happen in another year or two, but now we want to leave as soon as we humanly can, which is why I am not as prepared now as I expected to be with this. I also appreciate the reply of possibility of Michigan having their own assistance program for disaster relocation. That hadn't occurred to me and I will try to find out what, if anything, there is for that. And you are right about all the help being for reestablishing in our current area, or state. I've only spoke with a few FEMA reps and they did not know anything outside of the local help programs, nor could advise me on who to call - except the FEMA phone numbers which also weren't knowledgeable on out of state relocation. I do believe they said my relocation area could also be part of Tennessee and SC, so it may operate on a radius. Rightfully so, the aid is focused on our rebuilding here so when I try anyone local for guidance I am just brushed aside when I tell them I want to move to Michigan, in the winter. I am grateful for your replies. I feel heard. Thank you, thank you. liverichly 1 Quote Link to comment Share on other sites More sharing options...
liverichly Posted January 7 Share Posted January 7 You're welcome. I hope it all works out for you! Quote Link to comment Share on other sites More sharing options...
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