How to Get a Home Loan after a Bankruptcy Discharge
Regardless of the circumstances that led up to your bankruptcy, there are numerous ways to rectify the situation and reverse bad credit. Obtaining credit after a discharge helps improve your rating. And if you stay on the right path and continue to make wise credit decisions, you can qualify for a home loan in the future.
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Instructions
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Re-establish your credit history. Save $500 for a security deposit, and then apply for a prepaid credit card with your bank to start rebuilding your credit history.
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Limit credit card use and keep low balances to help raise your credit score after a discharge. Get into a habit of paying for items with cash to avoid excess debt.
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Pay your new creditors on time. Establish new credit habits and pay your bills on time each month to improve your odds of getting a home loan after a discharge. Send checks or submit online payments a week or so before the due date.
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Manage your funds. Plan ahead and aim for a down payment when buying a home after a discharge. Consult a loan officer for information on different home loan programs and down payment requirements.
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Wait at least two years. Buying a property immediately after a discharge will result in higher interest rates. Give yourself time to rebuild your credit rating.
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Discuss FHA home loans with a lender. These types of loans are easier to acquire with bad credit, and they require low down payments. Submit an application for an FHA mortgage loan. Discuss eligibility requirements with a mortgage professional.
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