Question: Here’s my situation:
> *married w/ 2 kids > *filed chapter 7 bankruptcy about 10 months ago > *annual gross income of $65k (my spouse does not work) > *owe $30k in student loans, paying $400 a month for the next 8 yrs > *owe $19k in auto loan, paying $500 a month for the next 4 yrs > *leasing an apartment for $935 > *have around $1k in disposable income each month > *should be able to manage a $2k monthly mortgage > *probably no down payment or $5k at the most
> Would I qualify for a home loan? If so, how much? I live in Southern > California and would need $300k for a new/decent home. Can I get > multiple loans?
> What if my parents co-sign the loan? Will that qualify me for a > larger loan amount? I’m assuming the interest will still be pretty > high. What is a reasonable rate in my case?
> What if my parents take a home equity loan on their house, say $50k > and I use that as down payment? Would that be better?
> What if my parents take a loan and buy the house but I would be paying > the mortgage? What implications will that have on their tax return > and mine? Is the interest on a second home tax deductible? Will my > mortgage payments be considered revenue to them? What happens when > later on the road my credit get better and I take a loan to pay off > their loan?
> What should I do? I know I need professional help. I just want to > get a feel for things before I seek professional advice. Thanks for > your help?
Answer: Well, I hope you dont quailfy. You need to get your self in order. At a minimum your going to need 1-2 years of good credit to even be considered, but look on the bright side, 2 years of taking that $1k is 24K, that comes close to paying off your student loan.
Dump the 19K car and get into something with lower payments. Why in the world would someone pay $500/month for a car. Why someone needs a new car is beyound me as well. Find yourself a small compact with a 2 year loan.
Now after 2 years your car is paid off, your loans are almost payed off and you have recovered your credit a little to maybe get a loan. I doubt your 2K is going to get the house you want since your going to be paying a higher interest rate due to your chap7. Maybe moving to some place you can afford? Around here $2k/mth will get a heck of big house, heck of a nice neighborhood or a lot of land and a home.
As for your parents cosigning, First off they would be stupid to do it. It becomes debt to them. Same if they get the loan and you repay them. Its there debt but then it is also there tax advantange. You have proven yourself to not be able to manage your money. You need to be taught a lesson.
The professional help you need is not how to buy a house but how to manage your money.
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