you have a recent bankruptcy on your credit and are looking to get financing for
a home, there is hope. Buying a home with bad credit will just put more emphasis
on the other two factors needed to get a mortgage loan, which are; income verification
and a down payment.
After bankruptcy most lenders want you to wait
at least 2 years from the time of the bankruptcy discharge before they will consider
you for a mortgage loan. After the two year waiting period is over, you
should be able to get financing easily.
You should also be able to get 100% financing
as well. You can usually achieve this as long as at least most of your payments
have been reported to the credit bureau as having been paid on time since the
discharge of your bankruptcy.
If you are looking to get a mortgage loan
after bankruptcy sooner than the 2 years from the time of discharge, you will
need to have almost flawless payment history since your bankruptcy discharge.
Also, you may need to have a down payment. If you have even 3-5% to use as a down
payment, that may be enough to help you get approved.
There are ways to
get a down payment for your mortgage besides having the money saved in the bank.
Here are some ideas of ways to do that:
1. Borrow or ask for a gift from
relatives. After you have financed the house, you can usually go and take out
a 2nd or 3rd mortgage up to the full value of your house, and then you could repay
the relatives. Keep in mind that if you intend the money to be as a loan only
from the relatives, you would need to disclose that to the lender before you close.
Lenders usually have regulations about where the down payment is coming from and
if you are not honest, it could be considered defrauding a lender.
are down payment assistance programs like Neighborhood Gold or the Nehemiah program.
These programs basically aid the seller in helping you with a down payment. Receiving
a down payment from the seller of the property is illegal, but through these programs,
it is legal. There are also other down payment assistance programs which are grants
and do not need to be repaid or paid for by anyone. To find out about these, do
a search on “down payment assistance” with your favorite search engine.
You could cash out a 401K or another investment and like in the first example,
repay yourself with a 2nd or 3rd mortgage after the loan has closed.
loans after bankruptcy are getting to be much easier to obtain these days. If
you would like to see a list of our preferred bad credit mortgage lenders, visit
this page: After
Bankruptcy Mortgage Lenders.
Carrie Reeder is the owner of ABC
Loan Guide. ABC Loan Guide is an informational loan website with informative
articles and helpful lists of recommended lenders for bad credit mortgage loans.
information is available on Chapter
For more information, search our site or the web: