Chapter 7, FHA and approval under 2 years

[Logan]

Can you fill us in on Debt/Income ratio? I'm wondering if you had a sort of compensating factor that overrides the 2 year FHA rule? Or is that rule more of a "guideline"

My DTI is 39%.

Logan

[Stilltheone]

Congrats Logan! I really hope you get it. That would give hope for the rest of us! Do you mind my asking what your credit scores were?

Congrats again! Keep us posted!!

[Logan]

Congrats Logan! I really hope you get it. That would give hope for the rest of us! Do you mind my asking what your credit scores were?

Congrats again! Keep us posted!!

My mid score is 684.

When I filed for BK I had a plan to put my financial life back together quickly. I reestablished my credit and learned to live well below my means so I could quickly save an emergency fund. I always knew I could get a loan under 2 years because I have just about everything going for me except the BK.

Here is why I will get the loan:

My DTI is 39% but I have a rental agreement in my back pocket that I will use to get it down below 29% if needed.

I have over 1 year of reserves in the bank.

My credit is 684 and I have multiple credit cards with a reestablished credit history.

I have a co-borrower who's income is not being used because we are relocating and she has no job lined up but she will help with getting the 2 yr exception since she has credit scores of 790+.

I have retirement of over 50K.

I'm in better shape than alot of people without a BK so why wouldn't a lender loan me money?

Logan

[debtmonster]

Why are people buying $415k homes for?!?! That is absolutely insane. Why not learn a lesson and buy a $100-150k home instead? I could not even dream of making a mortgage payment of a $415k home. Even if I could afford it, I would not do it. I could afford to make payments on a brand new Hummer H2 or Corvette Z06, but I'm not going to do it.

With all of the foreclosures going on, I don't see why anyone would pay more than $200k in today's market for a regular home.

[Logan]

Why are people buying $415k homes for?!?! That is absolutely insane. Why not learn a lesson and buy a $100-150k home instead? I could not even dream of making a mortgage payment of a $415k home. Even if I could afford it, I would not do it. I could afford to make payments on a brand new Hummer H2 or Corvette Z06, but I'm not going to do it.

With all of the foreclosures going on, I don't see why anyone would pay more than $200k in today's market for a regular home.

There is no such thing as a 150K home where I live.

[debtmonster]

There is no such thing as a 150K home where I live.

Then don't live there. Move to a place where it's cheaper.

Where I live now, all of the homes are $300-800k. I am going to see about buying a place 15-20 miles away.

[monkatom]

In San Diego not much choice if you want a home. You could move further North but then you are dealing with longer drive time (more gas) time away from family etc. We are not talking 15-20 miles we are talking 50-60 miles at least and even those are running high 200K.

[debtmonster]

In San Diego not much choice if you want a home. You could move further North but then you are dealing with longer drive time (more gas) time away from family etc. We are not talking 15-20 miles we are talking 50-60 miles at least and even those are running high 200K.

Then I would move out of San Diego. That's insane to pay that kind of money. Plus you're paying state income tax, which you would not have to pay if you lived in Nevada, Texas, Tennessee or Florida.

I don't care how beautiful that place is. Living there is living beyond a person's means. People need to tighten their belt and think about living cheap and moderate. Buying a $200-400k home (just because you have no choice) is never good. That's why I would never move there.

A friend of mine's wife got a job in Burlingame, CA years ago starting at $55,000/yr. They thought it would be great. Then they got sticker shock for everything and moved a year later to Jackson, MS.

There's nobody holding a gun forcing you to live in NY, CA or any other expensive state. You people living in expensive areas seriously need to think about moving to cheaper areas and give up those high lifestyles that require you to work 50-80 hours per week to maintain. You're all like one paycheck away from a disaster.

Yeah, you'll make significantly less money in another area, but the value for the dollar is so much higher.

[monkatom]

So leave a good job for me and my wife, plus our family out here and support system to move to a cheaper area with no guarantee of a job people to watch the kids etc? If Logan can afford a 425K loan and most likely can if they were approved in today's environment than why not do it. I decided at this time I can not afford that and plan on purchasing a condo.

Yes no one is forcing me to live here but I get paid well, my wife gets paid well and that is where our support system is. When I have the reserves and can afford a larger payment that does not exceed 28% of my gross and have no other bills than I will purchase a home and if its 450K and I can afford it then its worth it. I do not work more than 40 hours a week nor does my wife BTW.

[debtmonster]

No, you put your resume out on Monster, Dice and other job boards. When you get the job offer, you move.

That's how I've done it in the past.

[Logan]

No, you put your resume out on Monster, Dice and other job boards. When you get the job offer, you move.

That's how I've done it in the past.

You make it sound so easy. How many 100K jobs have you applied for lately?

[debtmonster]

You don't need to make $100k when you live in places that don't have $400k homes. You only need that kind of money when you live in an expensive place. If I made $100k, I wouldn't dream of buying a $400k home. I'd buy one for $150k tops... and that would be pushing it. By the time you pay taxes on that income, you're left with barely anything.

[Logan]

You don't need to make $100k when you live in places that don't have $400k homes. You only need that kind of money when you live in an expensive place. If I made $100k, I wouldn't dream of buying a $400k home. I'd buy one for $150k tops... and that would be pushing it. By the time you pay taxes on that income, you're left with barely anything.

When you make over 100K like myself then come and argue with me.

[debtmonster]

We did already. $100k is chump change unless you live in an affordable home. If you are living in California, you need to have a household income of no less than $225k to offset the high tax bracket and high cost of living.

I would think about moving to Texas or maybe even Arizona. That working around the clock crap gets old fast. I would be so burned out from that.

[oldhack]

Okay, whoa, already, huh?!
Please compare your manhood(s) somewhere else, okay?
Logan (back on topic), please DO let us know when/whether you close before your 2-year BK anniversary.
(As for me, I DON'T make $100,000 per annum, I DON'T pay state income tax, I paid $130,000 for a very nice, liveable home, and I DON'T care what any of you thinks about it! Nor do I car much about your choices, so much as your results.)