Mortgage after bankruptcy
So you have been through a bankruptcy and surely have been told to wait
at least two years before applying for a home loan. Waiting two long years
without any guarantee of being approved for a mortgage after bankruptcy can be
disheartening. Fortunately, this advice no longer holds true.
Today, there is a growing realization of the need to offer home loan
products that are specifically designed for borrowers with an imperfect credit
or financial history. Mortgage programs have been created especially for
borrowers who have gone through a bankruptcy. In fact, those with a bankruptcy
discharged for even one day may apply for a home loan. That's right, if your
bankruptcy was discharged yesterday, you can qualify for a mortgage today!
Now you are probably thinking that although you are eligible, it will be
difficult to qualify. The truth is that qualifying is much easier than you
think. The fact that you have been through bankruptcy is not even considered in
the evaluation of your credit. Any liens, collections or judgments that appear
on your credit report will also not be used in the evaluation of credit and will
not need to be paid off.
What is important and what will be looked at is your credit score. Now here
is the good news: with a minimum FICO score of 500, you are qualified to
purchase a home with a 20% down payment. Having a credit score between 550 and
579 will allow you to borrow up to 95% of the purchase price; and with any score
above 580, you are qualified for 100% financing.
With the competitive rates that are available on mortgage after bankruptcy
programs, you are able to realize the dream of homeownership with a mortgage
payment that is affordable and fits easily within your budget. Along with the
traditional benefits of owning a home, such as equity building and tax benefits,
you will most importantly be rebuilding your credit profile. Additionally, you
may also benefit from the current strong housing market and its appreciating
home values.
So now you know the following: that you can qualify for a home loan today,
what the credit requirements for a mortgage are, and that you can rebuild your
credit and financial life through homeownership. Gone forever are the days of
waiting two years and living with the dim prospect of obtaining a mortgage after
bankruptcy. You have worked hard to discharge your bankruptcy and have the fresh
start that you were looking for.
There is empowerment that comes with the knowledge that you can purchase a
home today even if your bankruptcy was discharged yesterday. So get qualified
for a home loan, start searching for a home and begin packing those boxes!
