Bankruptcy and buying a house requires lot of planning. There are two factors that need to be considered while buying a house with bad credit ratings. One is to get income verification and the other is a decent down payment. Only if these two criteria are satisfied can a person deal with bankruptcy and buying a house simultaneously. In most cases an insolvent waits for a period of two years at least to applying for a mortgage loan. But acquiring a mortgage loan prior to the completion of the two years term required with unblemished payment history is a difficult task to achieve after your bankruptcy. A down payment also is required; normally a five percent down payment would suffice. Obtaining this down payment is very vital for bankruptcy and buying a house deal. You can get a loan from a friend or a relative. Once the down payment is ready you can get finance for the house, then go for a second mortgage and repay your debts. The lender should be briefed about the whereabouts of the down payment, to verify if it is from a reliable and honest source as their reputation is at stake.
About bankruptcy And Buying A House Down Payment
There are some down payment assistance schemes also to help during bankruptcy and buying a house
. You can also find out about firms that offer this assistance by searching the internet. Once you have filed for bankruptcy it is advised to save immediately. At least a 20% of the property you prefer to buy should be in your savings account. This can help you get a mortgage immediately. The mortgage companies also ask for monthly bills to check for any default, so it is advised to save all your bills for a period of about six months prior to your mortgage application.
Bankruptcy and buying a house is not easy, as the insolvent is considered a high risk customer and requires paying higher interest rate or fee. Though, this is only a criterion, this does not stop bankrupts from going for new mortgage loans. You can sign with bankruptcy and buying a house deal. Though, the deal is expensive, there are people who have tried this alternative and have become successful owners of a house.
How to deal with bankruptcy and buying a house? The common advice would be the longer you wait the easier you qualify for a loan. It is normal practice to wait for two years after bankruptcy and buying a house to settle down, but some lenders have made it even earlier for the convenience of the buyers. All bills needs to be paid on time to give confidence to the lender. At least for a period of one year they are supposed to be no late payments. This can definitely work in your favour of acquiring a mortgage loan. This is just to confirm that your credit history is back to normal and you are eligible for a loan. A three to ten percent down payment is mandatory to acquire a loan before the two year term is completed. Bankruptcy and buying a house can go hand in hand if all the precautions are taken.