Home Mortgage Loans After Bankruptcy – Financing A Home After Bankruptcy
Posted on Feb 22 by MLP BlogFinancing a home after a bankruptcy doesn’t have to be an ordeal. When you find the right lender, you can secure reasonable rates on your mortgage loan. You can improve your loan application with time and some cash leverage. Depending on your financial situation, it is possible to get conventional rates with a bankruptcy on your credit file.
Lenders Who Deal With Past Bankruptcies
With a recent bankruptcy, you can turn to sub prime lenders to obtain financing for your home. As soon as your bankruptcy has been finalized by the court, you can apply for a home loan. Your rates, however, will be about 12% higher than conventional rates unless you have significant cash assets.
After two years, conventional lenders will consider your loan application. Even though your bankruptcy will remain on your file for several years, lenders will be more interested in your current payment history and debt-to-income ratio.
Tips To Improve Your Loan Application
While you can’t erase your bankruptcy, you can improve your loan application to qualify for better rates. Down payments of 20% to 50% are the easiest way to become eligible for lower rates. Having cash reserves for two months or more will also help.
When it comes to terms, selecting an adjustable rate mortgage will help you qualify for more and at temporarily lower rates. Selecting a shorter loan period also lowers your rates. Furthermore you have the option of buying down your rate with points. But you may be better served by increasing your down payment and refinancing in a couple of years when your credit improves.
Research Lenders Before You Buy
Take some time to research loan estimates before you select a lender. It is the easiest way to save thousands on your future home loan. Make sure that you use the same numbers and terms when you request loan quotes from different financing companies. That way you will have precise numbers to base your decision on.
Once you have picked a lender, the hardest part of the process is over. In ten minutes or less, you can complete your loan application online. Your loan contract will be delivered in a couple of days for your final review with funds soon to follow.
Found here.
2 Responses to “Home Mortgage Loans After Bankruptcy – Financing A Home After Bankruptcy”
-
Bryce McLarney says:
March 9, 2007 at 7:29 am
-
Can You Get a Mortgage Loan After Bankruptcy? - Banks.com Mortgage Blog says:
August 17, 2007 at 9:20 am
It is true that companies will finance you after bankruptcy is finished. However there are companies they will buy out your Chapter 13 bankruptcy or help you in chapter 7 bankruptcy. It is not true however that the rates are 12% higher. If it is a hard money lender this may be true but a legitimate will not charge 12% more than conventional rates. Many states like NJ or NY are capped at a max rate of 12.5 or 13%. The truth is if your credit is still above 500 it is realistic to get a 9-11% mortgage 1 day out of bankruptcy, in foreclosure, or currently in bankruptcy. One place would be my company. If you would like information you can call our office at 732-566-4455 and ask for Bryce. If it is beneficial for you we will assist you.
[...] Before you look for a mortgage loan with a bankruptcy on your record, make sure you try to take steps to improve your credit score and research lenders. Different lenders offer different programs for bankruptcy loan programs. Not only do you want to compare lenders, but you want to shop around to find the program that will best fit your needs, and cater to your specific situation. [...]
Leave a Reply