Good news, and questions...

I have said before that my husband and I have just moved back to Missouri (Cape Girardeau), and we are looking to begin investing (rehabbing).

Well, since moving back (in with my in-laws!!), we have decided that we want to purchase OUR home first. BK was discharged Feb. 2005. I have been VERY hesitant to let anyone pull credit because we have worked to get it back on track. We watch our scores on, and 3 days ago they showed 500, 598, and 612…

Well, today, I called a mortgage lender in St. Louis and had him pull them. They are ACTUALLY 570, 619, and 631!! I was shocked!! That is the good news. Here are the questions:

1.One thing that the lender pointed out was that my husband is an authorized user on one of his parents cc accts. (from college). So it figures in that this is a revolving account on HIS credit. It is in good standing, but the balance is 14,000!! So this obviously isn’t good for the debt/income! Should we have this removed, or will that hurt his credit score to take it off?

2.STUPID question: We looked at a house last month as a possible investment property, now we may choose to live in it. It is priced at 98,000. With under 7,000 it would be worth 120,000. If we put the money into fixing it up, how long would we have to wait to get an equity loan (maybe our only financing option to start investing)…

3.Will things such as debt/income matter when it comes to HM loans? Obviously it will go up after the home purchase.

I know that most of you believe that your personal home should be your first investment, but I want to make sure that we are doing the right thing. I hate the idea of having to put the investing plans on hold for any longer than we have!! Thanks in advance.

Sorry…One more question…Is “traditional lending” the best option when purchasing owner occupied??..I want to do this the best way!! ;D

Why not acquire a home using a “subject to” method of financing? This simply means that you take over or assume the financing. You can find a lot of advice on these forums under the subject to category and there are a variety of methods in which you can do it. I recommend using a land trust. Others have their own methods. Do some research and Good luck.