Buying a Home After Bankruptcy - How Long Should You Wait to Buy?

What do you want of Home Loans After Bankruptcy ?.

Many consumers with poor prestige do not even consider buying a home after bankruptcy. While a bankruptcy does remain on your prestige description for up to ten years, this does not mean you cannot seek prestige while the entire ten-year time frame.

Some population are able to purchase a home within one to three years of discharging their bankruptcy. The exact time frame will vary depending upon the theorize for your financial difficulties and your prestige history since filing for bankruptcy.

Home Loans After Bankruptcy

The important point to remember is that you should not be embarrassed or intimidated about buying a home after bankruptcy. The longer you wait to purchase a home, the longer it will take you to derive equity. If you can prove to a lender that you have increased your prestige rating and are no longer determined a risk, you will greatly heighten your chances of being approved for a home loan.

The number of cash you are able to supply for a down cost will also influence the time it takes to buy a home after bankruptcy. If you have a tremendous number of cash for a down payment, you will find more lenders willing to consider your loan application. While there are zero percent down loans available, this will only increase the number of interest you will have to pay.

Fha Loans

If you qualify, Fha loans are a good choice for population who have previously filed for bankruptcy. Some lenders will approve a customer's loan just one year after a bankruptcy has been discharged. However, the buyer will be asked to supply documentation about the circumstances of the bankruptcy and proof of their current prestige situation. The type of bankruptcy you filed, either part 7 or part 13, will also influence how long it takes to buy a home. If you filed for a part 13 bankruptcy and are still making payments, many times the trustee will not let you apply for a loan until you have completed your cost plan.

Interest Rates

As expected, anyone who has previously filed for bankruptcy will most likely be charged a higher rate of interest and often a higher fee for obtaining the loan. These types of loans are often referred to as "sub prime loans" and are favorite among customers who have a blemished or less than exquisite prestige history.

Buying a Home After Bankruptcy - How Long Should You Wait to Buy?