My neighbors son is trying to buy the house he's renting from a relative. He and wife make decent money, not great with finances, but no late or missed payments in several years.
From what I calculated, their mortgage payments would be below 20% of their monthly net income.
No concerning debt, just a couple credit cards with low balances. No vehicle or other debt.
They have saved nearly 10% of the value for a down payment.
Sale price of the house is expected to be around 15-20% less than the anticipated appraisal.
1- They had a CH7 bankruptcy, discharged in 2015, (those stay on credit 10 years.) Their first and only home was included in that.
2- Credit scores in low 700 range.
I'm trying to guide them a bit, as they are good people, but I don't know much about it.
Any advice to get started would be helpful.