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It is quite difficult for a person to take a home loan especially after filing for bankruptcy but it is not impossible, there are ways or rather steps you can follow and apply for home loans in no time.
- You have to re-build your credit rating-
When you file for bankruptcy it affects your credit score and can stay up to ten years on your credit report, but this is not the end for taking a home loan. You can take home loans by rebuilding your credit scores. You can do that by taking a secured credit card or by becoming an authorized user or maybe reaffirming debts after liquidation. There are many ways to increase your credit score.
- Applying for a home loan with FHA-
Applying with The Federal Housing Administration for a home loan after filing for bankruptcy is more suitable than other lenders. They are more flexible and suitable for people who want to take a home loan after filing for bankruptcy. There are some requirements to file for a home loan that you need to fill which are-
(1) you can only apply after 2 years from bankruptcy discharge.
(2) Outstanding tax liens should be paid off or have a repayment plan for it.
(3) it should be 3 years since any foreclosures or deeds-in-lieu of foreclosure
(4) all judgment of yours should be paid off.
If you can fulfill these requirements you can easily apply for a home loan as well as re-build your credit score.
- The last step is to file for bankruptcy-
If are now qualified to take a home loan, you can get the home loan but the interest rate will be higher than the person who did not file for bankruptcy. But there are 2 ways which can help you-
(1) You should make your down payment as large as possible as it will then keep your loan small, which will lead to fast repayment of the loan.
(2) Apply for a home loan keeping in mind that it should not have a prepayment penalty. So that you can repay early if possible which will also increase your credit score and help you in the future when required.
If you want bankruptcy legal counsel contact Recovery Law Group – (888-297-6203). We can help you start your life fresh, and have all the advantages you can get when filing for bankruptcy.