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The ever popular question...do we stand a chance? long...


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I would like to know where we stand at getting a mortgage.

We are wanting to build a house because my DH is a carpenter and can do most of the work himself. We can build a $150,000 house for about $95,000, so to me it doesn't really make sense to just buy a house that is already built. By building our own, we automatically have equity built up in the home. Is FHA a possibility for this?

Ok, here's our story. My hubby has worked at the same job for almost 4 years (he's been in the same line of work for 12). His income is $3000/month. I have not worked outside the home in a long time (I stayed home to raise our babies.) I have started a small business, but it's just breaking even right now, so I won't be able to claim any sort of income from it.

We filed BK 8 years ago. This has dropped off of 2 CRs and I'm working on getting it off the third. The problem is, we don't have a lot of credit built back up, yet. We went to paying for everything with cash because we didn't want to get back into a mess again. (I realize now it wasn't the best thing to do.) We are not in a huge hurry to build, but would like to do it before 2 years. I know FHA likes to see 2 years of on time payments. Is there anything we can show (such as insurance payments) to prove we are responsible?

Our FICOs are









His TU didn't have enough info to report right now. That should change as soon as some new accounts start reporting. He has ZERO negs on the TU report, so now we just need to build some positive. My reports do have a couple of medical collections that I am working on. I am hoping they will either just be removed, or I'll be able to pay for removal. They are pretty small, so this shouldn't be an issue and I think it will raise my scores.

Sorry so long, but I wanted to give you as much background as possible. Let me know if you need further information.

Thanks so much!!

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If you went through a general contractor, you would have not much problem with getting a construction loan that become a perm loan when your home is completed. Since you are not doing that, I think that the best idea is to go to a bank and have them finance the construction with a back up "take out loan" in place.


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Thanks, Charles. What exactly do you mean by "take out loan"? Would this be a viable option with our current situation? I just got hubby's TU score. It was 738 as of this afternoon. Do you think we'd be better off just getting the loan in his name and leaving mine off? His scores are a lot better than mine and he is the one bringing in all the money.

Another option we have is to possibly have his boss act as our general contractor. I think he would do this for us and just not charge us for the work that my DH does on his own. Of course, if you think we'd qualify for a "regular" loan (verses an FHA loan), maybe that is the better way to go. We don't have a ton to use for a down payment, so that was the main reason I was thinking FHA. What do you think?

Thanks again for your help.

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