Bankruptcy Home Loan

      A bankruptcy home loan is not impossible.  It may be a little difficult, but definitely not impossible. If you have the correct information and a detailed plan laid out you should be able to get a bankruptcy home loan. You will definitely have to do a little work but it is well worth it as we'll show you. You should start with some solid bankruptcy information from a professional so you have a solid base to begin with.  A bankruptcy filing shows up on the filer's credit record for seven years for a Chapter 13 bankruptcy filing and ten years for a Chapter 7 bankruptcy filing. If the filer does not take the right steps in the period immediately following the bankruptcy, he may have problems obtaining post bankruptcy credit for years to come.  What should the filer do?  As soon as the proceedings are complete, the filer should immediately begin to rebuild credit and prove his creditworthiness. This is not too difficult because you do it little by little.  There are various little things the filer can do to rebuild his credit so he can qualify for a post bankruptcy mortgage.

How to Get a Bankruptcy Home Loan

     The first and easiest thing to do is to join a credit union or savings plan and make regular contributions.  If you can't do this, then open a savings account and make regular deposits.  These will show up as a positive on your credit report.  Obtain a credit card.  It will not be too difficult.  You may have a lower limit and payer a higher interest rate, but you will establish credit.  Make sure you keep current on the balance without being late.  The same thing is true with a small post bankruptcy loan. You may have to keep a good faith balance but you will have the loan showing on your credit record and showing your creditworthiness.

     Before you apply for a post bankruptcy home loanmake sure you check your credit report.  You want to be sure that your credit report is current and not showing any debts that were discharged by the bankruptcy. There can be a time lag so you may have to check more than once.

Credit and a Bankruptcy Home Loan

     If the debtor has done all of these things, obtaining a bankruptcy home loanshould not be a problem.
Mortgage lenders are more interested in your present credit position - in the debt to income ratio.  This is the percentage income represented by debt. You want this figure to be low when you apply for a mortgage, even if it is in the months following a bankruptcy filing.  If the debt to income ratio is within the parameters of the mortgage lender, there shouldn't be a problem qualifying for a mortgage loan. According to most studies most filers have little or no problems obtaining a post bankruptcy home loan if they have re-established their creditworthiness and have good low debt to income ratios. After one-and-one-half to two years following the bankruptcy filing, most filers are treated the same as other home mortgage applicants. They have no more problems obtaining a mortgage than other people do.

The debtor can find lending institutions whose market niche is people with bad credit, even in the immediate period following a bankruptcy filing.  The borrower might need a co-signer or provide some sort of guarantee, but he can obtain the mortgage.  All the borrower has to do is a little homework and they should be able to get a post bankruptcy home loan.