Can you get a home loan after bankruptcy?
After you file for bankruptcy several years ago let’s say 4 , can you get a home loan with a decent rate? Or how long should you wait before trying to get one? If you have a stable job since 6 years and making 60 000$ a year will you have more chance to be approved? Is there a bank that has better reputation when it come to home loans I mean some banks are more hard than other to get a loan ? Pls give me information that might help. Thanks
Posted July 26th, 2010 in When To File Bankruptcy. Tagged: 6 years, bankruptcy, banks, decent rate, home loan, home loans, reputation, stable job.
The bankruptcy stays on a person’s credit for up to 10 years. But, if in that 4 years since the case closed the person has been responsible with their credit and has been taking steps to repair it and build it back up, that person could easily have scores high enough to get a mortgage at a decent rate. Probably not the best interest rate, but potentially the tier below that.
July 26th, 2010 at 8:36 pmThe bankruptcy will be a negative strike against you for 10 years on your credit report. Agencies looking to extend you credit will look at your overall credit score. Some of the larger banks only consider customers with good credit in today’s marketplace. To show a mortgage company you are not only a good risk, but have your financial responsibilities in order, you should run a credit report and close any credit cards you are not using and make sure there are NO delinquencies on any account you do have. Having a 20% downpayment may be in your favor when applying for a mortgage since not many do 100% financing anymore do to it’s high risk in today’s marketplace.
July 26th, 2010 at 8:36 pmNearly all lenders don’t care about a bankruptcy 3 years after the discharge; they will look at what you have done since to rebuild your credit. You can check your credit score at http://www.annualcreditreport.com (don’t go anywhere else – this is the one that is set up by the big three credit reporting agencies in the United States, to furnish free annual credit reports, as required by federal law).
July 26th, 2010 at 8:36 pmUsually 2 years after a bankruptcy you will be able to get a home loan. The amount of income you have does matter as well as the amount of money you are planning on borrowing and the amount of your down payment you have (which should be at least 20%). There are places that will borrow to people with bad credit you just have to do a little research on the company you plan on going with. You can learn more about bad credit home loans at http://www.besthelpfinancial.com/loanrefinance.htm
July 26th, 2010 at 8:36 pm