Bankruptcy Mortgage: Is It Possible?

By: Camie Ibara

If you wonder whether you can still apply for a mortgage loan, when you have a bankruptcy situation, the answer is 'yes'. You will need to know more about what to do when you have bad credit, but it all comes down to income verification and a down payment.

We will show you here a small guide to learn more about how to get a mortgage loan after bankruptcy. First, keep in mind that you need to let two years pass from the time when the bankruptcy was declared, before any institution will consider giving you such a loan. After that, the sky will clear and you will receive even 100% financing. You will also need, during these two years, to pay all your debts on time, proving that you are a trustworthy borrower.

If you do not want to wait for two years, there is also a possibility. First, a requirement would be a flawless credit history since the bankruptcy discharge. Second, you must forward a down payment for the mortgage loan. This would be about 3-5% from the entire amount you want to borrow.

The down payment can be quite tricky for you to achieve, if you do not have any savings. But you may have other ways:

1. Your family can help you with your endeavor. Ask them to borrow you the money needed for the down payment. After you get back on your feet with all the payments and mortgage, you can also repay your relatives. If you are in this situation, remember to tell all about it to the lender's representatives, as, if you do not disclose the source of the down payment, you can be accused of trying to defraud the lender.

2. When your family and friends cannot help you, do not despair. The Neighborhood Gold, or the Nehemiah program may help you, instead. These programs are meant to help you with your down payment. This means that you can borrow the money from the person selling you the property, under legal circumstances. There is even a better solution: grants for down payments - loans that you will not have to pay back. For that, you will need to do a little more research.

3. A third solution for a down payment would be to cash out a 401k or other investment and repay it with a second or third mortgage.

About The Author:

Camie Ibara is the Editor and Publisher of Article Click. For more FREE articles for your ezine and websites visit - www.articleclick.com