Despite the recent housing crises, getting a mortgage after bankruptcy is still possible, though still difficult. However, with a good plan and a willingness to rebuild your credit for a couple years, this is definitely and achievable goal.

Most lends require you to wait at lest 2 years after bankruptcy discharge before applying for a mortgage. Lender will consider other factors than your credit score (though this is still an important part of the equation) when considering loan applications. The two main criteria will be your income level and your down payment amount.

Prior to the whole housing crash, it was easier to secure financing for a new home after declaring bankruptcy, but this has all changed now with lenders tightening their credit purses and new government restrictions.

Visit Online After Bankruptcy Agencies

You can find after bankruptcy consultants and loan lenders online quite easily if you look around. The bad credit lenders and professionals specialize in helping you get a mortgage with bad credit and bankruptcy discharge. I suggest you visit as many of these sites as possible to see what the recommend and, if looking at bankruptcy loan lenders, what terms are offered. More research is always a good thing.

Establish New Lines of Credit

Now, though many lenders stipulate you wait 2 years before applying for a mortgage after bankruptcy, in truth you can apply any time. But waiting at least two years ahs a lot of benefits. After you declare bankruptcy, your credit will be virtually destroyed. But remember, you can rebuild it if you are consistent with your payments after bankruptcy discharge. It’s important by establishing rebuild your credit but opening up new lines of credit. The quickest way is to apply for a credit card. Now, you will have to first start out with a secured credit card. After about a year of making payments on your secured card, you will receive offers for unsecured credit cards.

To best improve your credit history, you should try and have three different credit accounts such as a credit card, a line of credit, and some other form of credit lending. You must make every attempt to pay off your balance on these accounts each month.

Monitor Credit Reports

Once your credit history has been reestablished, you need to keep an eye on your credit reports to make sure they remain error free. If you spot errors, you can contact the companies to investigate and remove them. I suggest you sign up with a credit report monitoring agency. You may have to pay a small monthly or yearly fee, but these companies will give you access to your credit report online and automatically email you whenever any changes, both good and bad, are made the files.This is important to do, especially when considering buying a home after bankruptcy.

Have a Down Payment

What will help you the most for getting a mortgage after bankruptcy is to place a sizeable down payment on the house. Lender love down payments because it shows the borrower is committed to paying off the house. If repayments stop, the lender keeps the down payment as security. Down payments offer less risk for lenders, and lender are always about reducing risk. If you can save up between 3-5% of the home value as the down payment, this should be enough, when combined with your repaired credit and income level, to secure you a personal loan after bankruptcy.

I would tell you it’s easy to get a mortgage after bankruptcy discharge. However, I will tell you that you can do it, if you plot your course carefully. The key is to work on fixing up your credit while also trying to gather money for a down payment. Don’t’ give and don’t get impatient. Successfully getting a mortgage after bankruptcy can take a year or two of effort on your part.