Mortgage Loans After Bankruptcy
How To Get Mortgage Loans After Bankruptcy
Getting mortgage loans after bankruptcy may not be as difficult as you may think. Most lenders will approve you based on certain criteria. If your bankruptcy is recent you may need to provide the lender with proof of income and have a good sized down payment along with an excellent payment history.
The standard waiting period most lenders require for a mortgage loan after bankruptcy is two years. After the two years it should be relatively easy to get a home loan with 100% financing. You must also show a positive payment history with on time payments since lenders will be looking at this as well.
Your income and down payment will be considered and most lenders want from 3% to 5% toward the home. You can obtain the funding either from savings, a loan from relatives, obtaining the funds from a 401K or certain investments and through government assistance programs. If you obtain the funding for your down payment from relatives or friends you must disclose this information to the lender to avoid defrauding the lender.
You can find lenders who will most likely approve your loan, and who specialize in bad credit lending. Be diligent in researching the company and asking questions. Shop around for the best interest rates as these may vary from lender to lender along with certain fees they may charge. Some traditional lenders are also willing to work with you if you maintain an excellent credit history afterward.
A mortgage loan these days is fairly easy to get, even with a bankruptcy on your record. Lenders are willing to help those who have recent bankruptcies if they can show that they are doing what is necessary to rebuild a good credit history. Rebuilding good credit takes time but it is possible. Managing your finances is the key to your financial well-being.