Q: Do I qualify for 1st time homebuyer if I wanted to purchase a 2nd property although I live in my bankrupted home?
My bankruptcy was discharged 9 yrs ago & I did not reaffirm my mortgage. I continue to live in the home and made all pmts timely w/APR 4.625%. My credit is in the mid-700s but lacking variety due to no mortgage debt. Although the obligation was removed, I missed the opportunity to demonstrate my perfect payments over the past 9 years! The lender has no interest in taking my home and the balance can be paid off if there was an immediate need to (65K). Few questions please: 1) Do I qualify as a 1st time homebuyer for an FHA or conventional loan if I wanted to purchase another property (regardless if I sell the current one)? 2) Should I refinance my current home to take advantage of lower interest which by calc could reduce the pmt by $65/month and get it added to my credit profile? 3) Does the overall benefit of the release of the debt obligation outweigh the benefits of adding a different type of debt with a manageable balance, and timely payments?
A:
Is this the first house you are buying? Sounds like it is not. Therefore you are not buying a first home.
If you want to keep this home, that still has a mortgage on it, then refinance the mortgage at today's low interest rates.
Lastly, I don't understand the last question. Anything you do with a new mortgage as long as you pay on time, will improve your credit in the future.
A:
1. No. You are not a first time buyer.
2 and 3 need to be answered by a qualified bankruptcy practitioner after fully assessing your complete financial situation.
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