Edge of Bankruptcy

Submit Enquiry

Name

Email

Phone:

Enquiry Type

Comments

Enter Code:
Captcha

Home Loan after Bankruptcy – Is it Possible?

After the crisis of bad credit and filing for bankruptcy, perhaps you may feel intimidated of starting up new transactions. For instance, you may feel disheartened about purchasing a new home because of your bad credit history. However, even if you have a record of bankruptcy in your credit report, there is still a chance to make a new start.

Today, there are mortgage companies who are willing to grant home loan approvals for those who filed for bankruptcy in the past. Tough competition among lending companies in the market drives these lenders to give special home loan packages for those who have been through bankruptcy. As long you have been discharged from your debts, you can go right ahead and submit that home loan application.

Will Lenders Accept Your Application?

Lenders are not merely taking chances. After all, your home property will be used as a security for your loan so there’s really not much risk involved. If you’re done filing Chapter 11 or Chapter 7 of bankruptcy, you can call a lending company and ask about your chances of getting an approval.

While other lenders require 2 years of interval after your bankruptcy has been discharged, other lenders also grant home loan approvals after just one day of discharge. If you have been submitting your payments religiously and all your payments are reported to the major credit bureaus, you should have no problem getting a loan approval.

What About the Down Payment?

You might also be required to give at least 3 to 5% of down payment in order to get an approval. If you do not have the money to use as down payment perhaps you can borrow from a friend or a relative. However, if the money you will put down is borrowed, you should disclose this to your lender before closing. It is important to declare to your lender where the money is coming from since not doing so can be counted as defrauding your lender.

Another option can be programs such as Neighborhood Gold or the Nehemiah. These down payment assistance programs help you get the loan even if you don’t have enough cash to put down. Use the internet to search about “down payment assistance” programs.

Starting New

Once your home loan is granted, don’t forget that you’ll be paying monthly payments for your mortgage. This is your chance to rebuild your credit history. If your reason for filing bankruptcy in the past were circumstances beyond your control such as illness, loss of job, death in the family, calamities and other unfortunate events, then you may not accountable for bad credit.

However, if the reason behind your bankruptcy is due to unpaid debts because of irresponsible management of your finances, then you might have already learned your lesson. Keeping up with your monthly payments is the best way to avoid being caught in bad debt. Live according to your means and do not waste time in making adjustments with your lifestyle if you see the need to change. This is your chance to own a home and to regain your reputation. This article is free for republishing
Source: http://www.financealley.com/article_191372_76.html


Don't Miss...
  1. Death of the Subprime Mortgage Market
  2. Buying A Home After Bankruptcy - Get A Mortgage Loan After Bankruptcy
  3. Reverse Mortgage Lenders
  4. Bad Credit Mortgage Lenders - Things You Should Know About Subprime Lenders
  5. Mortgage Lenders Making The Right Choice
  6. How do lenders calculate Mortgage Penalities (hypotheque)
  7. Working with Mortgage Lenders Has Benefits
  8. Types of Mortgage Lenders
  9. Personal Loans – Lenders To Your Rescue
  10. Plenty of Mortgage Lenders to Choose From
  11. Home Loan Lenders - Finding The Best Home Mortgage Lender
  12. Bad Credit Mortgage Lenders in California
  13. Sub Prime Lenders - Get A Mortgage With Bad Credit
  14. Reduction in mortgage products will not affect prices, says the Council of Mortgage Lenders
  15. Subprime Mortgage Lenders - Helpful Tips When Getting A Subprime Mortgage Loan
  16. Mortgage Lenders Are Dropping Like Flies With Their Little Legs Turned Up And Kicking
  17. Types Of Lenders You Should Know Before Getting a New Home Mortgage
  18. New Home Loan - Understand The Various Types Of Mortgage Lenders
  19. Negotiating Terms and Interest Rates with Mortgage Lenders
  20. Mias Calls On Mortgage Lenders to Fix Their Exit Fees
  21. Find Out How You Can See The Cost Of A Lenders Mortgage Insurance
  22. Online PayDay Loans: How to Gain an Advantage over Lenders
  23. Bad Credit Unsecured Loans- No dearth of sub-prime lenders in the UK loan market
  24. California Bad Credit Mortgage
  25. Most Lenders Consider Bankruptcy Personal Loans as a Bad Credit Risk
  26. Mortgage Refinance or Home Equity Loan What's the Difference?
  27. Auto Refinance Loans – Backing up Your Dream
  28. Think You Can't Get a Mortgage?
  29. Fast And Multi-Purpose Loans
  30. Used Car Loans
Latest...
  1. Correcting The Common Misconceptions About Filing Bankruptcy
  2. Get Simple & Easy Debt Help with Clear Start
  3. Debt Advice & Consolidation - The Importance of Regulation in the Industry
  4. Get Free Debt Help from Clear Start
  5. Clearing Up the Question of IVA Fees
  6. Bankruptcy Alternatives - 5 Ways to Avoid Bankruptcy
  7. How Bankruptcy can affect Your Credit History
  8. Bankruptcy The Last Financial Resort
  9. Bankruptcy Alternative
  10. Debt help & advice - IVA vs Bankruptcy

© Edge of Bankruptcy 2008. All Rights Reserved