Buying a Home after Bankruptcy

You can buy a home after bankruptcy. The financial companies offer home loans for the individuals with bankruptcy. Such loans are also available online. You can apply for bad credit home loans. These are secured loans and are available to the individuals with bad credit history, CCJs and individuals with a history of bankruptcy.

The financial companies look for two things if you have filed for bankruptcy and applying for the loan. First is your income and second is the down payment. The conditions are much different if you apply for the loan after one year of bankruptcy and you apply for loan two years after filing for bankruptcy.

If you intend to apply for the loan within a year or so after filing for bankruptcy then you have to qualify certain conditions. You should have at least three percent to five percent for down payment. Also you should have paid up all your payments in this one year. There should not be any sign of default in your credit after one year of filing bankruptcy.

Things are a lot easier if you are applying for loan after two years of filing bankruptcy. This is because the lenders consider this as a time in which you have build up your credit and now you are reliable enough to pay your installments in time.

To apply for bad credit loan you have to place any of your assets as collateral. This asset can be your new home or any of your property with a value. The bad credit loan can get you an amount in the range of five thousand to seventy five thousand dollars. The repayment term is flexible and you can take the amount with a repayment duration ranging from five years to twenty five years.

To qualify for the bad credit home loan you must have a flawless term of two years after the discharge of bankruptcy. You should have built a good credit record in this term. Besides this, you should have a regular source of income.

The lenders generally ask you to submit your last pay slip from your employer. They also verify that you have made all your payments and have no outstanding loans or debts. If you qualify above criteria then you can also manage to get hundred percent financing for your home.

You can also search for the online options. The loaning process is simple and fast. It is not impossible to buy a home after bankruptcy. All you have to do is weight your options and improve your score so that you can get the loan amount at reasonable rates.