Bankruptcy housing loan is a loan that you may be able to avail after minimum of two years after you had declared bankruptcy. Though they are difficult to obtain, you will be able to get one of them by working hard towards this goal. Bankruptcy housing loans have stringent requirements and higher interest rates, higher fees and generally come in lesser loan amounts. It is a good idea to reduce the loan payments and build up a reasonably good credit record. You may also do well to wait for home ownership until your credit situation has improved and is good enough to go be eligible for a home loan. By waiting for at least 24 months before applying for a home loan, you can get a comparatively low interest rate and a higher loan amount.
With the rising number of borrowers with an imperfect credit status and financial history, the need has arisen for specifically designed loans for this segment has become a necessity. Mortgage loans have been created specially for the borrowers who have been through bankruptcy. Thus you can become eligible for a bankruptcy housing loans
the very next day your bankruptcy is discharged. Several lenders have specialized home loans called bad credit mortgages that the people who had been through bankruptcy.
Before applying for bankruptcy housing loan you have to see which type of bankruptcy you had filed. Before you apply for loans you have to be free from all financial obligations from your creditors. You also have to prove your credit worthiness to the lender to be convinced that they are not at risk by giving you the loan. You need to show documentary evidence to prove that you have the capacity to make your loan payments on time and regularly. You can do this by paying all your bills on time, avoiding default of any payment, paying off debts and strictly monitoring the use of your credit card. You can present the records of these as proof of your eligibility to the lender when you apply for a bankruptcy housing loan.
Sub prime loans are meant for people with low credit scores. You can request online quotes from a few lenders who approve bankruptcy housing loans. A broker will provide you with multiple quotes from different mortgage lenders who deal with sub prime loans. Selecting a good mortgage broker who specializes in Bad Credit Mortgages is invaluable.
Many lenders are interested in offering loans to credit impaired people. You are described as credit impaired if
- You are an undercharged bankrupt
- You have been discharged from bankruptcy in the two years immediately preceding the time of your application
- You have unpaid credit defaults
- You have outstanding home loan payments
- You have court writs or judgments against you
- You have overdue unpaid council rates, tax liabilities to the ATO and water rates
- You have more than $500 of Centerlink debts
Those with a CRAA (Credit Reference Association of Australia) report showing bankruptcy will be able to obtain bankruptcy housing loans from sub prime lenders immediately after being discharged.