Mortgage Options

You have a very complicated situation. If you purchase a home for cash and pull out cash after you close, it's considered a Cash out Refinance. The tax laws are much different than if you purchase the home with a mortgage in the beginning. Using a mortgage to purchase upfront is much more favorable tax wise. Without looking at your tax returns and seeing your complete profile, it's impossible for me or anyone else to properly quote you rates, terms and commit to an approval. Best advice I can give you is to contact a local mortgage broker, not a bank, and apply with them.. They have access to numerous lenders and can find the right one to fit your particular scenario. WilliamAcres.com

William is correct; you have a complicated set of circumstances. On the surface, your credit scores and the time since your BK was discharged make you eligible for an FHA loan. Assuming you have no other debt and can document a two year history of your income, it appears your ratios will also qualify. You will have to document your income to obtain an FHA or conventional loan. You will need to disclose the other property and the condition of it (partially constructed with intent to complete it). This is a material fact that if not disclosed could constitute mortgage fraud, and you don't want that. Buying for cash and then trying to refinance is going to be more expensive (two escrows) and you would only be able to get 85% of the appraised value or purchase price (whichever is less). AN FHA purchase allows for 96.5% LTV. Contact a local Mortgage Banker/Broker, rather than one of the big banks. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, He/She is trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

Hi, the credit scores are good and enough time has elapsed since the C7. Income for self employed folks is calculated from most recent 2 years tax returns. If it works out that the 25K holds up then we should be in good shape. Rates are great, really low,but its tough to quote until analysis is done. So, yes there is a chance. We need to look at the returns, appraised property value, etc.thanks, George BurnsHometown LendersPort Charlotte, Fl.941-445-3611