Bankruptcy home loans are not only available, they are plentiful. Obtaining a mortgage after bankruptcy can be difficult, but it can be done. Although the bankruptcy discharge will remain on a credit report for ten years, there are rehabilitation options to regain a sense of trust with a lender.

One such pathway is to use secured credit cards for two years following the discharge. Payment history must be accurate and on time, and will count heavily with a lender determining your ability to handle a mortgage. There are dozens of banks ready and able to help you, just Google the keywords "secured credit cards" for a roster of lenders. The amount that you charge each month on the card is not a factor to establishing new credit. By charging your regular monthly purchases, you will not have to buy costly, unnecessary items and can repair your credit on things you were going to buy anyway, including groceries.

Once a two year pattern of timely payments have been established, the borrower may approach a liberal lender with confidence that home loans after bankruptcy will be issued. However, should a sizable down payment be required, then it's back to the drawing board for creative measures. One such option for the 401K or stock holder, it's a wise decision to liquid your assets and re-invest into your property. Even in the face of recession when property prices plummet, they always come back up in due season. Try moving your stocks around, cash out what you can and plan to make your home your prime investment. While bankruptcy mortgages are difficult to obtain, if you are willing to work out the necessary sacrifices they are possible.

Using discount loan brokers is the way of the future, putting many banks and time-tested lenders to the back of the line. When lenders must compete for your business, the battle for better rates and service is on. Traditionally, closing costs would reach 3 percent or higher, but now there are dozens of quality, well trained lenders who have lowered the rates to pennies on the dollar. Some wise shopping and price comparisons are worth the extra time to save you a bundle over the life of the loan. And the liberal lending institution is your best bet for a company to look the other way with mortgage bankruptcy. The policy is that they will dismiss your past if they are comfortable with your ability to pay.

The competitive nature of the mortgage industry has allowed the home buyer to shop around for his/her perfect match. No more does having a bankruptcy mean that you are subject to inflated fees and interest rates. You can afford to be choosey. So, let not a brokerage firm deceive you into thinking you must take an adjustable or five year loan. There are plenty of 30 and 40 year fixed rates available with fair and equitable interest rates applied. Shopping for a home loan is hard work, and you should never feel obligated to take the first offer. In cases where bankruptcy or other credit challenges are a factor, early loan shopping is a must and should be done before you even begin to look at properties. All these steps are recommended if you are to ever get mortgages after bankruptcy.

Most program guidelines for applicants carrying a discharge are minimal and can be achieved with some determination. For a Chapter 13 recovery plan, you must be on time with all paymenst for 12 months. Persons who need to rehabilitate a Chapter 7 discharge, must perform valiantly with no late payments for 24 months. The waiting period to correct for the bankruptcy is a maximum of two years and certainly worth the trouble if that BK was necessary to save you from stifling debt. Like any wise business plan, you must realize that "Rome wasn't built in a day", and neither may your equity building after a discharge. But, with wise planning and a steady course of action, home ownership through a bankruptcy mortgage loan is possible only two years from the filing date of your bankruptcy.

For military personnel seeking to obtain a VA loan, the rules for obtaining loans after bankruptcy are similar to the civilian rules. However, greater scrutiny may be enforced as to the nature of the bankruptcy. An investigation is warranted to determine if the bankruptcy was out of necessity, negligence with funds, or complicated by means outside of one's control, such as excessive medical bills. Once the bankruptcy filing issue is resolved, the veteran may proceed with a VA loan and purchase a home within one to two years from filing the discharge. All this for a home loan after bankruptcy.

Whatever your credit challenges from the past, you can be sure there are lenders lining up for your business when buying a house after bankruptcy. The best interest rates will not always come from your bank, as they sell only their own loan products. Check with mortgage brokers in your area for the best rates and let them do the leg work for you. Progressive lenders are the best source for discount loans, and may be the only source for a bankruptcy home loan.