Many individuals that just filed a bankruptcy, rather it’s chapter seven or 13, may ask themselves if they are going to be able to buy a home. The answer is yes, it is possible to purchase a home after a bankruptcy. There are a few things that one must know before they start trying.
There are several types of loan options available to help those purchase a home after a bankruptcy has been filed. Many of the loan options are going to require that the individuals wait a period of time before they will be qualified. They will have to rebuild their credit and show some consistency with making payments on time. View lendingexpertblog.com for tips on rebuilding your credit.
In order to rebuild credit, credit card companies will help give out credit to those that just filed bankruptcy. Some will even give you a credit card shortly afterwards. If for some reason they won’t, there are secured credit card options available. Secured credit cards are a great way to open a new account. With a new account, it should maintain a very low balance and be paid off monthly to increase credit score ratings. Having a bank account is also going to help. Anything on a credit report, after bankruptcy, should show consistency of making payments and having an account open for over a year. This is going to help get a home loan approved.
Generally, most home loans will not be given until 24 months after the bankruptcy has been discharged. This is a great goal to look forward too. The individuals will need to save up money for a down payment and closing costs, if needed. Interest rates may be higher for these loans. However, over time, they can be looked at to see if the interest rate can be lower.
Depending on the type of loan, and how much of a loan is needed, is going to determine the requirements that will be needed from the individuals applying. It’s important to check out multiple options and what will work best to get the home purchased. Most of the home loans, for those with bankruptcy on record, will require that the individual(s) also have a credit score over 630 to qualify. Others may want this score to be higher. There are going to be different factors that will be looked at. The great thing to know is that it is possible to purchase a home after a bankruptcy.