Here's my situation: *married w/ 2 kids *filed chapter 7 bankruptcy about 10 months ago *annual gross income of $65k (my spouse does not work) *owe $30k in student loans, paying $400 a month for the next 8 yrs *owe $19k in auto loan, paying $500 a month for the next 4 yrs *leasing an apartment for $935 *have around $1k in disposable income each month *should be able to manage a $2k monthly mortgage *probably no down payment or $5k at the most Would I qualify for a home loan?  If so, how much?  I live in Southern California and would need $300k for a new/decent home.  Can I get multiple loans? What if my parents co-sign the loan?  Will that qualify me for a larger loan amount?  I'm assuming the interest will still be pretty high.  What is a reasonable rate in my case? What if my parents take a home equity loan on their house, say $50k and I use that as down payment?  Would that be better? What if my parents take a loan and buy the house but I would be paying the mortgage?  What implications will that have on their tax return and mine?  Is the interest on a second home tax deductible?  Will my mortgage payments be considered revenue to them?  What happens when later on the road my credit get better and I take a loan to pay off their loan? What should I do?  I know I need professional help.  I just want to get a feel for things before I seek professional advice.  Thanks for your help… John

Here's my situation: *married w/ 2 kids *filed chapter 7 bankruptcy about 10 months ago *annual gross income of $65k (my spouse does not work) *owe $30k in student loans, paying $400 a month for the next 8 yrs *owe $19k in auto loan, paying $500 a month for the next 4 yrs *leasing an apartment for $935 *have around $1k in disposable income each month *should be able to manage a $2k monthly mortgage *probably no down payment or $5k at the most Ignoring all else, if you think that you can afford a $2K mortgage on $65K gross with $400/month for student loans, a $500/month car, and a wife and 2 kids to support then I can see why you filed Chapter 7. You even allude to the impossibility of this when you say that you have $1K in disposable income with a $935 rent. Using all of it gets you to $1935. There are tax implications, but they may not be so great with all of the deductions you already get for the wife + kids. If you borrow $300K at an interest rate of 6% (likely better than you will qualify for) your mortgage payment will be $1800-ish without taxes or insurance, which will be another $400 per month. Mortgage (PITI) : $2200 Car:            :  $500 Student loan:   :  $400

What if my parents co-sign the loan?  Will that qualify me for a larger loan amount?  I'm assuming the interest will still be pretty high.  What is a reasonable rate in my case? What if my parents take a home equity loan on their house, say $50k and I use that as down payment?  Would that be better? you can't be trusted to pay, i sure wouldn't want to put up my homes equity for you to ruin it. like another poster said if your take home pay is about $4000: $4000 take home -$400 student loan -$500 car loan leaves $3100 -$300-400 utilities -$300-400 food -$150 gas leaves you with $2150 your mortgage+taxes with eat up this money in no time. also you will need to pay, insurance, car maintance, house maintance, lawyer fees, yearly taxes. what about Christmas for the kids, no money left over.... utilities would include gas, water, hydro, phone, cable, internet...

Wow... that's a bummer.. so either my spouse has to work to add an additional $2k a month of income or we drop down to an old beat up fixer-upper.  My spouse will eventually work, but right now we feel it's better if she stays home with the kids since they are still young.  Can I afford a $200k loan?  What can I afford?  What income level would be considered safe for a $300k loan?  Thanks... 1. I am not sure you can buy an old fixer upper in SoCal for $300K right    now let alone $200K. 2. It's not how much you make as much as how much you spend. They are both    important, but even someone making $300K per year will not qualify for    a $300K loan if they have $30K/month in debt service. A $65K income is    fine for a $300K loan if you have no other fixed expenses. Your problem    is that you have a $400/month student loan and a $500/month car    payment. 3. Shouldn't you be the one figuring out how much you can afford? You    thought you could afford a $2000/month mortgage, right? Why don't you just take it easy for a little bit? You just had a bankruptcy and your wife is taking care of the kids. She'll work and maybe your car will be paid off by then. That seems like a better time to buy for you than now, but that's just me. If you are intent on buying then figure on a $150K loan costing you about what your rent is right now. Can you find a place (condo?) for that or less? It will be hard, but perhaps not impossible unless you are looking in West LA or something. Dimitri