There is no doubt that having declared bankruptcy increases the challenges involved in getting a mortgage. There is reason to be hopeful of securing a bankruptcy home loan, but be aware that buying a home with a post-bankruptcy loan places more emphasis on verification of your income and your down payment.The two-year rule of bankruptcy home loansMost lenders will want you to wait at least two years before applying for a mortgage loan after bankruptcy. It helps to have paid most of your bills on time in the period before applying for a bankruptcy home loan, but the good news is that, if you've done this, a post-bankruptcy loan should be fairly easy to get once that period is over-in many cases with 100% financing. Trying to get a bankruptcy loan before two years have passed
If you are trying to get a post-bankruptcy home loan before two years have passed since your debt discharge, your payment history since that time must be nearly flawless. Also, it is more than likely you will need a down payment, which in many cases can be as low as 3-5%. Gathering a down payment for a mortgage loan after bankruptcy
There are a few common methods for getting the money for a down payment to help you get a bankruptcy home loan: Borrow money from relatives. Once you have received a post-bankruptcy loan, you can usually take out a second or third mortgage to repay the money. But if you do borrow money from a relative, be sure to disclose this to the lender before you close, as not doing so could be construed as fraud. Investigate down payment assistance programs such as the Nehemiah program or Neighborhood Gold, or any of the many other organizations formed for this purpose. Cash out a 401k or other investment and repay yourself with a second or third mortgage later.
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