Can I Buy a Home after Bankruptcy?

Yes, you can be approved for a loan to buy a home after filing bankruptcy. Your down payment and income verification typically needs to be higher, however, and financial institutions are willing to approve a loan if these two requirements are met.

After you file bankruptcy lenders prefer you wait at least two years before you apply for a loan. After two years elapse then it is quite easy to get a mortgage loan for your new house. Many lenders will even offer you 100% financing on your home. This is usually offered to individuals who have kept their credit history in good standing after they filed bankruptcy. If you have paid your credit cards on time, auto loans on time, hospital bills, or any type of loan on time then you will generally qualify for 100% financing after the two-year period.

If you do not have the funds saved to finance your home, here are a few ideas that may be accessible to you.

• Explain to your parents or relatives the situation you are in and see if they're willing to loan you the money to get started. Explain to them you will pay the full amount back after purchasing the home. Then you can get a second or third mortgage on the home and pay them back.

• There are programs that are available to individuals in need. These programs financially assist the buyer by providing the down payment. You cannot legally accept any kind of down payment from the seller but it is legal to accept help from these programs.

Mortgage loans are becoming more accessible to individuals that have filed bankruptcy. Many financial institutions feel that the borrower has no or little debt after bankruptcy and become willing to approve the loan.

Contributing National Payday Staff Writer

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