New loan after BK

[servingsize]

We are looking at getting a new home, our current house that was IIB. We have a couple different options but i have a few questions. Our incomes have went way up since we bought our first house and we are looking at renting our current house out after we purchase and move. We have been saving to hit that 20% mark for what we want.

Our current house is 13% of our monthly income including escrow, Without escrow its only 10%.


When underwriters look at our current house payment do they include escrow for the payment or is it only the P & I?


If they look at my monthly expense would it be better to just take the payment out of escrow and pay the annual/semi-annual payments?

[tobee43]

serving size. welcome to the forum!!

well whether you take it out of escrow or not, it will none the less be counted as an expense. in other words if you didn't have your taxes and insurance in an escrow account they would still be counted as part of your expenses. 13% of your total net income or gross. it it's net, i think you are in a pretty good position.

i wish you good luck on finding a lender! please keep us posted, as getting a mortgage successfully after bk is a subject matter many are interested in.

best of luck!

[servingsize]

13% is gross, its 17-18% of net... I still have the waiting period to go.

[tobee43]

someone will correct me if i'm wrong but i know years about it was %25 of gross and now it's %35 of gross (due to the increase in housing prices).

oh, you still have the waiting period to go?

[LadyInTheRed]

Yeah, they use gross income. I thought it was 33%, but I it very well may have changed since I last looked into it.

[servingsize]

someone will correct me if i'm wrong but i know years about it was %25 of gross and now it's %35 of gross (due to the increase in housing prices).

oh, you still have the waiting period to go?

we were just discharged, house included no-reaffirmation agreement. Just need to work on our credit to get it back up to par and what ever waiting period there is from a lender 2-3 years i hear

[tobee43]

we were just discharged, house included no-reaffirmation agreement. Just need to work on our credit to get it back up to par and what ever waiting period there is from a lender 2-3 years i hear

oh, okay, then you have a bit of time to go. and, as lady points out it has changed as to the ratio the lenders are seeking nowadays. so i wouldn't be very concerned about it until you are applying.