If there is a past bankruptcy showing on your credit report you may
think that you won稚 be able to buy a new home with the assistance
of a mortgage loan. However, there are bad credit home loans available
for those who have undergone a bankruptcy and qualification is not
that difficult. There are two issues that will be taken into account
by the lender, they値l verify your income and probably request a down
payment.
Waiting period
There is a waiting period you値l have to face after bankruptcy has
been discharged. Most lenders will require that 3 years have gone
by since the discharge before even considering granting you a loan.
During this time you should make sure your bills are paid on time
and you don稚 fall behind payments, so when you finally apply for
a loan your credit will have improved considerably and you値l be able
to get a home loan without the need of money down.
Down Payment
If you intend to get a mortgage loan before this waiting period,
you値l need to meet very strict requirements. You値l have to show
that you haven稚 missed a single payment nor you have late payments
at all. You値l also be required to provide a down payment in order
to get approved. You値l have to put as much as 10% of the property
value down. If you can稚 provide a down payment it is quite difficult
to get approved but there are still other options.
You can always borrow the money from family or friends. You can always
repay them since when you get the home loan you値l be able to request
a home equity loan as you値l by then own the property. Bear in mind
though, that some lenders are reluctant to accept down payments not
raised directly by the applicant and you are obligated to reveal this
information, so you might as well ask the lender before making such
a move
There are programs that can help you with down payment too. These
basically provide the seller the ability to help the buyer with the
down payment which is otherwise strictly prohibited. You can ask your
real estate agent for this information as they are surely able to
provide it. Some lenders are also reluctant to accept this kind of
transactions, but you can always try.
Another option is to apply for government grants, there are grants
specially designed for helping people in this kind of situations.
Consult with local offices and with your real estate agent weather
you qualify or not for such aid. As opposed to the previous options,
government grants do not need to be repaid so they should be the first
solution to consider as you could save thousands not only by not paying
back the principal but also by avoiding interests.
Where to find information
You can find all the information, contacts and figures online by searching
the net, but if you feel you need some guidance you can always seek
professional help. You can contact your real estate agent or you could
join some of the online sites that provide access to many home loan
lenders and government grants. That way you can solve this issue from
the comfort of your home.
Bryan Quinn is a financial advisor with more than thirty years of
experience in the field of finance who aids people undergoing financial
problems and helps them obtain personal loans, home loans, student
loans and grants, consolidation loans, car loans and many other financial
products regardless of their credit situation.
Recommended reading:
Yes, You Can Get a Mortgage: Even If You've Had a Bankruptcy, Foreclosure,
or Other Credit Issue
