byronreese
By Shauna Zamarripa
How to Buy a Home After Bankruptcy
By Shauna Zamarripa
OverviewFor most families, bankruptcy and home ownership don’t mix. Many individuals believe that declaring bankruptcy erases the possibility for home ownership for many years after the fact. This is far from the truth. It is much easier than you might think to get a home loan, even after a bankruptcy, by following a few simple steps.Step 1Check your credit. Verify that all debts included in your bankruptcy have been discharged, and obtain a copy of the discharge letter from the courthouse.Step 2Save some money. Prior to applying for a loan, consider how much you can afford paying on a monthly basis, and expect to have a minimum down payment of 3 percent for a home purchase.Step 3Open new trade lines of credit. Consider opening up a secured credit card, but pay it off completely each month. This will help to build your credit over six months and put you in a position to own a home in the next year.Step 4Document alternative credit line sources like rent payments and utility bills. This will show a bank that you are paying your bills on time.Step 5Apply for a mortgage with a mortgage loan officer. Bring your bankruptcy discharge letter with you for the application process, along with your proof of employment and bank statements to verify that you have saved up money toward a down payment. Providing that you have worked hard to make timely payments for at least 12 months after a bankruptcy discharge, you will be eligible for a home loan, and are now ready to complete a home purchase.skill2ingredientCredit report
Discharge letteringredientsCredit reportingredientsDischarge lettertipOpen up at least two new trade lines of credit after bankruptcy, but pay them off each month.tipsOpen up at least two new trade lines of credit after bankruptcy, but pay them off each month.keywordbuy home after bankruptcy purchasekeywordsbuykeywordshomekeywordsafterkeywordsbankruptcykeywordspurchaseResourcesreferenceBankruptcy and Home Loans
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