Will It Be Hard Buying Home After Bankruptcy
Many people are concerned about being able to get a home loan after bankruptcy. What most people don’t know is that the United States Federal Government offers a variety of options for people who want to purchase a home after a bankruptcy. In fact, under certain circumstances you can even purchase a home even while still in bankruptcy.
Depending on your credit score, your credit history since your bankruptcy was filed, and the length of time since your bankruptcy has been discharged (if Chapter 7); your VAHLC loan consultant can match you up with a government home loan program that will give you the best rate and terms possible.
Rules for military: If you are active duty military or a veteran you may be eligible to purchase a home with no money down after 2 years with a Chapter 7 Bankruptcy discharge, or a minimum of 12 months with no new missed payments after Chapter 13 filing (court permission required).
Rules for Non-military: Civilians are eligible after 3 years with a Chapter 7 Bankruptcy discharge, or after 13 months with consistent payments if in a Chapter 13 Bankruptcy (court approval also required). The down payment can be as low $100 (depending on property location).
Since a Chapter 13 bankruptcy is set up on a payment plan it can be refinanced after 12 months from the filing date.
All of these programs are backed by the US government and allow a borrower to get a home loan with lower credit scores. Unlike conventional home loans, these programs may allow you to qualify for a home even with bad credit.
If you believe that bankruptcy is a rock bottom for you, both financially and for your credit score, then you only have one place to go – and that is up. So your next question should be how to go about rebuilding your credit score so that buying a home after bankruptcy becomes a reality.
To rebuild your credit score, you must use credit responsibly, pay your debt on time and keep your balances low. Another great way to rebuild your credit is to avoid too many credit inquires
As a result of the bankruptcy you’ve hopefully learned from the experience and have gotten your personal and/or household finances in order. You should have settled many unknowns and now you know exactly where you stand and which debts have been discharged.
If you are going through a Bankruptcy or have recently had a bankruptcy discharged and would like to purchase a home, the federal government has loan programs that will allow you to purchase a foreclosure for as little as $100.00 down.
Philip Georgiades. If you are a US citizen over 18, a federally guaranteed / insured home loan may be originated for you. To
apply for a VA Loan call or visit VA HLC today. IF you are not in the military, call or visit Peggy Mae to apply for a Federal home loan.