You’ve had a hard financial past and you had to declare bankruptcy. Everyone you’ve talked to said you won’t be able to purchase a home for several years. Understandably, this depresses you because you declared bankruptcy to make a new start. Instead, It seems like this will make your life more difficult than it was previously….or maybe not.
Fortunately, a bankruptcy doesn’t have to mean that you’ll be renting for the foreseeable future. There are many mortgage lenders in the industry now who will work with people who have recent bankruptcies-even very recent ones.
However, most lenders will tell you to wait at least two years from the time your bankruptcy is discharged to attempt to purchase a home. After that amount of time, your options are almost endless, even without a down payment.
Before finding a lender, make sure your debts are being paid on time consistently and your credit reports are accurately reflecting your current situation. You will also want to consider your budget and how much of a house you can afford. For example, you won’t want to pay more than 36% of your monthly income on a mortgage payment, insurance and any other home incidentals. Read the rest of this entry »
