Getting a Home Loan after a Bankruptcy

Most people are aware that it is difficult to acquire a home loan after filing for bankruptcy. Some people go by the amount of time that the bankruptcy will last on their credit, which is normally seven to ten years, before they apply for a home loan. However, some lenders do not determine loan eligibility by bankruptcy status alone and may actually lend money only a few years or less after an individual has filed for bankruptcy.

Some lenders will distribute loans to individuals almost right after they have filed for bankruptcy. This is usually the case when the individual has had perfect credit history just before the bankruptcy claim went into effect. This may seem unlikely, but with the addition of being able to make a substantial down payment (normally less than 6% of the home loan), lenders are more willing to provide assistance.

Of course, not all lenders are as generous. Many lending firms require a 2-year wait after bankruptcy before determining eligibility for a home loan. Just like cases where individuals may receive home loan eligibility directly after a bankruptcy claim, some lenders will consider someone for a loan if he or she has shown a generally upstanding history with the credit bureau since the bankruptcy claim.

Contact Us

Finding the best loan from the best lender after filing for bankruptcy is difficult. If you need assistance in choosing the right loan for you while carefully considering your credit history, contact the West Palm Beach bankruptcy lawyers of Eric N. Klein & Associates, P.A. at 561-353-2800.