Right Time To Buy
Jerry just went through bankruptcy, has six kids and child support, and only makes $26,000. How can he buy a home?
QUESTION: Jerry and his wife want to buy a home and he makes $26,000 a year. She is a stay-at-home-mom and they have six kids. He also pays $200 a month in child support and one is in college. He finished a Chapter 13 bankruptcy in January. How should he go about buying a home?
ANSWER: It’s going to be about two years after a Chapter 13 bankruptcy to buy a home. If someone lends you money for a house before then, it will be one of these ripoff subprime loans. During that time, get the credit card paid off and build up an emergency fund of three to six months of expenses, along with as big a down payment as you can save.
To put your credit back together, don’t borrow more money; just pay your rent and bills on time or early. Also, look at your career and find out what you can do that you enjoy that will help you double your income.