How to Buy a House After Bankruptcy in Florida

A new home after bankruptcy.

The original damage done to your credit score will decrease two years after you filed for bankruptcy. Florida bankruptcy laws are more liberal than in many states. It is possible to file for bankruptcy in Florida and keep your home. If you are new to Florida or you opted to sell your house in order to help decrease debt then purchasing a new home is possible. Lenders look at three specific areas when considering a loan. The first is your FICO score. The second area considered is income and how long you have been employed. A conservative lender will look at 30 percent of your income going toward your mortgage when determining loan amounts. Finally, lenders look at how much money you will put toward the down payment.

Instructions

1. 

   Review and repair your credit.

   Review and repair your credit report. Order a copy of your credit report from the three credit agencies. The credit bureau agencies are Experian,TransUnion and EquiFax. You are entitled to receive one free credit report per year. Obtain your free report from AnnualCreditReport.com. If you have already received your free credit report then use a credit monitoring service to access your current credit report. Review your report and contact businesses that report wrong information.

2. 

   Length of employment and income are significant after bankruptcy.

   Maintain your job. If you are new to Florida and have filed bankruptcy in another state, securing employment is crucial to your ability to get a loan. Lenders will look at your income when they consider giving money for your mortgage. Your income and how long you have been employed by the same company is a factor. A conservative lender will allow 30 percent of your annual income to apply toward your mortgage. Save a portion of your income in a savings account. Use the money you have set aside to put as a down payment on your new loan.

3. 

   Find a lender.

   Call your bank and speak with a mortgage broker. Talk honestly with the lender you select.Tell them about your bankruptcy and your desire to purchase a home. It is possible to buy a home in Florida after you have filed for bankruptcy. However, most lenders like to see a two-year time frame between filing for bankruptcy and a new mortgage. If you are less than two years out of bankruptcy and have a credit score of 650 or below your lender may tell you some specific steps to take in order to qualify for a loan in the future. Ask your lender for advice on how to re-establish credit if you are unable to secure a loan on at first.

References

• Bankruptcy Information Center: Chapter 7
• Alper Law: Bankruptcy, Chapter 7
• BankruptcyLoanExperts.com:Buying a home after bankruptcy

Resources

• AnnualCreditReport.com: Request your free annual credit report.