Buying a home after bankruptcy?
Buying a home after bankruptcy? There are 2 ways to do this. First way is to qualify for a mainstream lender at best rates. To qualify you must have be discharged a least of 2 full years. You also have reestablished credit on at least 3 trade lines, counting from the date of discharge. 3 Trade lines means for example, a credit card, an auto loan, and a personal loan, or any combination. Keep in mind though that secured credit cards usually do not have a lot of weight.
If you have yet to re establish credit, the 2nd option is to qualify with an Alternative B lender. But this means needing to increase your down payment to 20%. Since location is critical in this type of lending, a larger down payment might be necessary.
You will need mandatory insurance with a mainstream lender if you have less than 20% down. With an Alternative Lender it will cost a 1% of the net amount borrowed. Sometimes this fee could is capped into the mortgage if the lending value percentage is low.
Whenever you have 20% or more down you will need a 3rd party appraisal and is a rule of the approval. When making an offer leave ample time for the appraisal report, so it can be completed before your financing condition.
After a bankruptcy we encourage borrowers to talk to a mortgage broker before going to look at homes. A qualified mortgage broker will be able to determine under which program you fit into. We have been serving previous bankrupt borrowers since 2003. We have a terrific track history of placing mortgages under this circumstance.
Call or apply on line today if you intend to buy a home after bankruptcy.