Applying for Mortgages after Bankruptcy

There is hope for individuals who are bankrupt and may want to apply for a mortgage or a loan. Normally if you have been bankrupt, this may be eminent by your credit score, many lenders who may be able to finance your home, may put stress on two important factors, they being; proof of your stable income and a much needed down payment.

Most bankrupt individuals have to wait for at least two years from the date of their declaration of bankruptcy and bankruptcy discharge, this is due to the fact that most banks and vouched for lenders, do wait for term of two years, and then analyze your credit scores. After the expiration of such a period stated by lenders, you may be in a position to get approved finance easily. If you can build your credit history a little, you may even get qualified and approved for hundred percent financing with low interest rates as well. Hence it may be in your interests to wait for the period stated by these lenders and use that to your advantage, building your credit history. There may be some lenders, who may have shorter waiting terms.

Some of you may not be in a position to wait for the period stated by these lenders, after your bankruptcy discharge. In which case, you may have to have a perfect payment history, since the date of your bankruptcy discharge. You may even have to pay a lump sump down payment; this down payment again varies from lender to lender. Usually anything between 4-6% of the mortgage value may be enough to help you get approved.

So usually it may boil down to the down payment part, you being bankrupt may not be able to afford this, at the same time you may be in a position to wait and save for a down payment. In such situations there are some ways you can have the down payment cash ready within some time.  One way might be to borrow the cash from relatives or friends who might ready and be able to afford this. After borrowing and making the down payment, your loan usually may get approved and then you can refinance your home with a second or a third mortgage, which you can utilize to give back the cast that you borrowed from your relatives. No matter what you do, do not show this money as a loan, in which case you are obliged legally to disclose this to your lender before the close. Some creditors and lenders usually may have restrictions on where the down payment money comes from. Another way to provide the down payment is to use the help of the many assistance programs like Nehemiah Program. They are completely legal. There are scores of these assistance programs available, you can search and review these online using your favorite search engine. Thus it may be a rocky road to get a mortgage approved after bankruptcy, but there are ways and programs to help you do so. You should contact your CA or Mortgage consultant, and enquiring about these. A little research may go a long way.

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