Mortgages After Bankruptcy - Is There Hope?
Michalis 'BIG Mike' Kotzakolios
Kotzakoliou, SSA

You may be asking yourself, Is there any hope on getting a mortgage after bankruptcy? The answer is Yes. You may have had to file bankruptcy because your debts were out of control, but this does not mean you can't get mortgages after bankruptcy.

To get mortgages after bankruptcy, you usually have to wait at least 12 months to qualify for a mortgage. You will not get the best terms with a mortgage after bankruptcy, but you can always refinance at another time. This will give you some time to re-build your credit from bankruptcy, so you can qualify for a better mortgage rate.

When considering mortgages after bankruptcy, the most important aspect is to repair your credit history. A great place to start is to get a credit card. If you want a mortgage after bankruptcy, you need to make your payments on time to show you have learned your lesson after filing bankruptcy. Creditors know if you can't make small payments, you'll never make payments on time with mortgages after bankruptcy.

To get help and information on mortgages after bankruptcy, you can get assistance from the National Foundation for Credit Counseling and the Association of Consumer Credit Counseling Agencies. You can find information online with a simple Google or Yahoo! Search. Getting help from credit counseling should not be very expensive and in some states they may be free. To qualify for mortgages after bankruptcy, this is an important step to getting your credit and finances in shape.

The next step after improving your credit rating, is to find out how much house you can afford. To buy a home after bankruptcy, it's a good idea to determine what mortgages after bankruptcy will cost with principle, interest, taxes and insurance. You should be able to pay a mortgage after bankruptcy equal to 20% of your pre-tax income. You may qualify for up to 28% of your pre-tax income, but it may be a bad idea to stress your finances. Try to remember how and why you went bankrupt in the first place. This can help give you some relief against getting over extended with mortgages after bankruptcy.

Finding a mortgage after bankruptcy with FHA and VA loans may be the best way to get a new home. With these types of loans you make a lower down payment. Usually it is 3% of the home's selling price, or less. FHA is pretty forgiving to past bankruptcy. Take time to look into all your options on mortgages after bankruptcy and you will see that there is hope after all.