Little Known Secrets To Buying A House After Bankruptcy

By Phillip Williams on March 18, 2010, 6:02 am Posted in Economy News

Bankruptcy will not prevent you from buying a home. Contrary to popular belief, you can purchase a home in approximately 1 ½ to 2 years after your bankruptcy has been discharged. The FHA will even consider backing a mortgage two years after a bankruptcy has been discharged and you meet the qualifications. The secret is how to improve your credit worthiness after the bankruptcy to make getting a mortgage easier.

Wait 6 Months After Bankruptcy And Get An Installment Type Loan

One of the largest contributing factors to a credit score is to show a payment history of on time payments. Establishing an installment account, and making all the payments on time, will boost your score after bankruptcy. Apply for a secured credit card, apply for a small car loan or even secure a personal loan at the bank. Any type of credit that falls under a monthly payment plan will help your credit. When reestablishing credit soon after a bankruptcy you will most likely need to go the secured credit route. That’s ok. You have money gaining interest, backing a revolving account and you are building credit – it is all good.

 

Save As Much As Possible For A Down Payment On Your New Home

When you come to the lending table with a considerable deposit for a home, it is hard for a lender to look away from the deal, even if you have had a bankruptcy in the past. Instant equity in the home is almost a guarantee for acceptance from the the lenders. If you continue to rebuild your credit, provide a down payment and show stability in employment, even after bankruptcy you will get a new home.

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One Response to “Little Known Secrets To Buying A House After Bankruptcy”

1. Chris says:

   March 18, 2010 at 3:21 pm

   A Public Savings secured card features:

   - NO Credit Inquiry
   - Reporting to 3 Major Credit Bureaus
   - No Annual Fee
   - 0% APR for 6 Months on Purchases
   - Low Minimum Deposit of $200

   Start building credit history with a Public Savings secured card. It’s perfect for people with bad credit or no credit looking to qualify for an auto loan, home mortgage, rental apartment, credit card or other loan.