Buying a House Post-Bankruptcy

You should be able to qualify for a home loanyou may not yet have available in your bank account.
post-bankruptcy, though most lenders require that youThey include:
wait two years after discharge. One of the biggest1. Ask for a gift from relatives. Maybe you know that
concerns on the minds of those considering filing forsomeone (your parents or grandparents, for example)
bankruptcy is whether they'll be able to buy the houseintend to leave you money upon their passing. Or
they've dreamed of owning post-bankruptcy. Forperhaps your relatives have been offering for years to
many, it seems like an impossibility, but it's not. It's true,help you with your financial problems, but you haven't
though, that most lenders are going to want you towanted to trouble them. It's perfectly okay to accept a
wait at least two years after receiving yourgift from relatives to finance the down payment. Just
bankruptcy discharge (i.e. forgiveness) before they'llremember that the lender is going to ask where the
consider giving you a mortgage loan.down payment is coming from, and you cannot lie
Once that two-year waiting period is over, however, itabout this-if the "gift" is really a loan you have to pay
shouldn't be too hard to get financing for a home,off, you must disclose that to the lender.
possibly even 100% financing. How can you achieve2. Down payment assistance programs like
this? By making a concerted effort to make all bill andNeighborhood Gold or the Nehemiah program may be
credit payments after bankruptcy on time. Also, savingable to help you. These programs aid the seller in
up enough to make a down payment on the homeproviding you with a down payment. While it's illegal to
should make it even easier to get a home loan afteraccept a down payment from the seller of a property,
bankruptcy.with these programs, it is legal. Just make sure you
Trying to get a mortgage loan after bankruptcy buthave proper advice from a real estate agent or
prior to that two year period will probably be a lotattorney to make sure everything is on the up and up.
trickier. You'll pretty much have to have a downThere are also other down payment assistance
payment saved (even as little as 3-5%), along with aprograms, usually grants that do not require repayment
flawless payment history post-bankruptcy discharge.which you can check into.
You may find that it's worth it to wait that two-year3. You may have the option of cashing out a 401(k) or
period and make sure to save up for a downother investment to use as a down payment, though
payment while paying all your bills on time.you'll want to take into account any penalties early
There are ways to obtain a down payment for acash-out may incur.
post-bankruptcy mortgage besides saving up money