A Mortgage After Bankruptcy
By mortgage writer: Dave Leonhart

Well, there is good news for you! Yes, you can get a mortgage after bankruptcy! In fact, there are some loan programs that can give you a mortgage 1-day after discharge!

Before I explain the details, you might want to check out the excellent resource for locating that special mortgage after bankruptcy here at RatesIQ.com This is an indispensable source for someone looking for a unique loan such as this because you will find some of the nations top mortgage lenders, of which at least one who specialize in most every loan program available today.

But, as with most things in life, there’s good news and some not so good news. As I said, you can get a loan after bankruptcy because some lenders specialize in this area almost exclusively. But, there are some restrictions, which I can only layout for you here in general since each lender will have their own set of rules.

You will need to have some equity. Just how much, again, depends on the lender. Generally, 75% or less is a good rule of thumb. This means that if you have a $100,000 home value, you should only owe $75,000 (all real estate loans combined) or preferably less, since there will be closing costs for your new loan. So divide the amount you owe ($75,000) by the home’s value ($100,000) and you get .75 or 75%.

You will also need to have a job so you can make regular payments on the new loan.

Depending on the lender, you may need to have a certain amount of time that you lived in the home, for example a minimum of one year, which in lender’s talk is called “seasoning.”

Also, the mortgage interest rate you get offered will be higher after filing bankruptcy, but hey, you’re able to get back on your feet again, and that’s what counts.

Now, here’s some better news for you. Have you heard that statement that a bankruptcy will stay on your credit for up to 10 years? Well, this true. But, as far as getting a the best type of loan available with the lowest interest (called a conforming or conventional loan) you can apply for this type of loan in a little as one year after your bankruptcy has been discharged! Most lenders require a two year period of good payment history before granting a conventional loan, but as I mentioned there are some who will go as little as one year. Check out RatesIQ.com for lenders who offer this.

So don’t be discouraged just because you filed for bankruptcy and one of your friend said you’re stuck for 10 years! Take a deep breath and start surfing… you’ll probably like what you find. Mortgage and bankruptcies are part of life, and there is usually someone willing to help you.