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Buying A Home After Bankruptcy
Waiting for the Bankruptcy to be Discharged The Federal Housing Administration’s policy for qualifying for a home loan allows you to re-establish credit after at least 24 months have passes since your bankruptcy has been discharged. Conventional mortgage lenders are a little less flexible in this regard and require, on average, at least 3 years to have passed before they extend any credit to you at all. In either case, you must make sure that you have paid all your bills and tax liens as first steps to improve your credit score. Providing a Down Payment to consolidate your Mortgage Loan It is possible to obtain a mortgage loan prior to the end of the waiting period, though it is subject to more constraints and stricter protocols. You will need to submit proof that you have met all pending payments and that you have never submitted any payments after the date they were due. A down payment with a value of as mush as 10 percent the value of the property you intend to buy must also be paid in order to qualify for a loan. In case of failing to make the down payment you can pursue other alternatives, one of which includes borrowing from friends and family. The advantage associated with this is that you may avoid interest payments and pay back the amount at a time you deem fit. This may reflect poorly on your loan application since you are required to disclose all information regarding the source where you obtained your funds from. Borrowing from third part sources casts doubts on your ability to raise future payments on your own and increase the lender’s apprehension about extending a loan to you. Other programs permit sellers to help the buyers with obtaining money for the down payment. Under regular circumstances, this is strictly prohibited; in exceptional circumstances such as bankruptcy, this may be possible. Real estate agents must be contacted to obtain information regarding such programs. While lenders are hesitant to accept payments not directly raised by loan applicants, there is no harm in trying. A viable option includes seeking government grants: unconditional loans that need not be repaid. The government readily extends aid to people in financial duress and eligibility can be determined by contacting local offices of relevant government agencies and real estate agents. Grants are perhaps the most feasible option since they are absolutely free and add no further burden on the loan applicant. What are the sources of obtaining information? The internet is a veritable treasure trove if you are looking for information, contact information, facts and figures regarding mortgage loans. You can browse through scores of options regarding mortgage firms and potential sources of external borrowing for down payments. Professional help can also be found online if you are looking for expert advice; this way you can resolve all your issues and have all your queries answered from the comfort of your own home. Article Directory: http://www.articledashboard.com Melissa Kellett has been a financial consultant for years. She specializes in Bad Credit Loans Guaranteed and Bad Credit Mortgage Loans Guaranteed. Visit her site at www.speedybadcreditloans.com |
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