After Bankruptcy - Buying a Home After Bankruptcy

After Bankruptcy - Buying a Home After Bankruptcy

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http://leafgardenpress.com/ Qualify for a Home Loan Even after Bankruptcy.

If you've recently declared personal bankruptcy, or you think you might file soon, you're probably concerned about the prospect of ever buying a home. Since a bankruptcy stays on your credit report for a decade, you might be thinking you'll have to keep renting for a long time to come.

Fortunately, this is not the case. You will be eligible for a FHA home loan two years after your bankruptcy is discharged. Your down payment will typically be the same as it would for any other FHA buyer - three percent. Your interest rate will probably be a percent or two higher than standard interest rates, but it won't be as high as you might think.

If you want a conventional loan, you'll have to wait four years after your discharge. For many buyers, though, the advantages of a conventional loan are negligible, so there is really no reason to wait an extra two years.

Of course, reestablishing your credit as soon as possible after your bankruptcy will improve your chances of getting a home loan.

You should get a credit card as soon as possible after the discharge, and make absolutely sure that your payments are made on time. Your timely payments will be reported to the three major credit bureaus, dramatically increasing your credit score. Having a credit card also shows lenders that you are committed to being responsible with your finances.

Buying a home after personal bankruptcy can be a bit more challenging than obtaining a mortgage with good credit, but it's important to remember that bankruptcy won't keep you from getting a home loan forever. In fact, most people are surprised at how quickly they can become homeowners!

More After Bankruptcy - Buying a Home After Bankruptcy Issues

Question by questionintexas: Will I still owe my FHA loan if home is forclosed on or if I file for bankruptcy? (Texas resident)? After Hurricane Ike I moved out of my house and into an apartment. I cant afford to pay for both so I'm late 3 months on the house. Someone told me that if my house goes into forclosure, I will still owe the FHA loan and the government will garnish my pay. They also said that a bankruptcy will not cover an FHA home loan. Any help will be GREAT! Best answer for Will I still owe my FHA loan if home is forclosed on or if I file for bankruptcy? (Texas resident)?:

Answer by kemperk
foreclosed, yes bk, depends on the rules of the BK judge. I suggest you negotiate for a lower rate loan and keep the house. [save it]

Answer by Stephanie G
FYI - BK laws are not governed by a judge, they are enforced by a judge. Now why did you move out of your house after the hurricane? Was there damage to the property? Was the property insured? Have you filed a claim through your homeowner's insurance? Typically whenever there is damage to a property due to a natural disaster the banks are willing to help you out especially since they understand that you are paying for an apartment. You should contact your bank before allowing the property to go to foreclosure. A chapter 7 will not help you at all since this particular chapter will only liquidate your unsecured debt and your mortgage is a secured debt. A chapter 13 will allow you to put all of your arrears into a plan and allow you to pay those arrears back over a three to five year period...in addition to your regular ongoing payments. Sounds to me like you need to decide what you want...to have your property go to foreclosure or file a bankruptcy that makes sense and allows you to save your home. Good luck to you!

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