Many people think that after they file for bankruptcy they will not be able to ever own a home. This is simply not true. If you are one of these people, there is hope still for those that have had a recent bankruptcy on their credit. In order to buy a house after bankruptcy, there are two factors that govern which are income verification and down payment.
How Long After Bankruptcy Do I Have to Wait to Get a Mortgage
So how long after Your bankruptcy must you wait to get a mortgage? According to most lenders, you should wait at least two years before you begin to finance your home. If one has become bankrupt, lenders normally require the borrower to wait for a minimum of two years from when he or she went bankrupt before making their application for a mortgage loan. Once this two years waiting period has been served out, lenders will normally offer loans and finance should not be difficult to obtain.
Although waiting the two years sounds great there is still more that one has to do in order to take out a mortgage after bankruptcy. Mortgage companies require affirmations that the debtor has been making timely payments since the bankruptcy discharge.
It is important for people who have filed bankruptcy to show that they have made all timely payments and have not been late on any of their required payments since filing the bankruptcy discharge.
Thus, how to buy a house after bankruptcy will require having a good and certified credit standing that has been consistent ever since the bankruptcy was discharged, and it may even be helpful if the debtor is able to pay a down payment, which even as small an amount such as three to five percent as a down payment will help to further the cause adequately.
Ways to Buy a House After Bankruptcy
Other methods open, when one is considering how to buy a house after bankruptcy, are to borrow or ask for a gift from relatives. One should always be honest with lenders about the source of the down payment; otherwise, dishonesty could lead to it being treated as defrauding the lender.
Finally, with regard to how to buy a house after bankruptcy, one may also consider cashing out a 401k or another investment, and repay with a second or third mortgage after the loan gets closed. These days, mortgage loans following bankruptcy are not so hard to come by, and there are many bad credit mortgage lenders who will provide loan assistance in this regard.
Buying A Home After Bankruptcy is Not Impossible
Buying a house after bankruptcy is not impossible if you practice good credit practices after the discharge you should be able to get a mortgage again.