If you have filed for bankruptcy in the past and feel as if you have no chance of buying a home—you are wrong. The only hurdle in your way is the home loan, as finding a house and making an offer have nothing to do with your bankruptcy.
As you probably assume, buying a home will not be as easy for you as it is for someone with good credit. You can definitely apply for a home loan with poor credit as long as you can demonstrate your strengths through your income and a decent down payment. There are plenty of sub prime lenders that are ready and willing to help you buy the house of your dreams.
Most typically, lenders advise you to wait at least two years from the time of the bankruptcy discharge before you apply for any loans. As long as you wait out the couple of years while maintaining a good standing on your credit after the bankruptcy, you should be fine. Just be sure you are diligent about making all your payments in a timely manner.
If you try to get a loan before the two years have passed, you will need to prove you have had a flawless payment history since the bankruptcy's discharge. Also, for a stronger case, you will need to have a down payment. It does not have to be much. A five percent down payment should be sufficient.
If you do not have the money readily available for a five percent down payment, do not be discouraged. There are ways to get a down payment for your mortgage such as borrowing the money from someone in your family, or if you have a retirement account, you could temporarily cash some of it out and then redeposit the money after you take out a home equity loan.
If you are not prepared to offer a down payment or if you know you have slipped up on some payments, give yourself six months to improve and then apply for the loan. Your dream home could still be waiting for you!
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If you have filed for bankruptcy in the past and feel as if you have no chance of buying a home—you are wrong. The only hurdle in your way is the home loan, as finding a house and making an offer have nothing to do with your bankruptcy. As you probably assume, buying a home will not be as easy for you as it is for someone with good credit. You can definitely apply for a home loan with poor credit as long as you can demonstrate your strengths through your income and a decent down payment. There are plenty of sub prime lenders that are ready and willing to help you buy the house of your dreams. Most typically, lenders advise you to wait at least two years from the time of the bankruptcy discharge before you apply for any loans. As long as you wait out the couple of years while maintaining a good standing on your credit after the bankruptcy, you should be fine. Just be sure you are diligent about making all your payments in a timely manner. If you try to get a loan before the two years have passed, you will need to prove you have had a flawless payment history since the bankruptcy's discharge. Also, for a stronger case, you will need to have a down payment. It does not have to be much. A five percent down payment should be sufficient. If you do not have the money readily available for a five percent down payment, do not be discouraged. There are ways to get a down payment for your mortgage such as borrowing the money from someone in your family, or if you have a retirement account, you could temporarily cash some of it out and then redeposit the money after you take out a home equity loan. If you are not prepared to offer a down payment or if you know you have slipped up on some payments, give yourself six months to improve and then apply for the loan. Your dream home could still be waiting for you!