Bankruptcy And Buying A Home Types Of Bad Credit Mortgage Loans

Bankruptcy And Buying A Home Types Of Bad Credit Mortgage Loans



Bankruptcy And Buying a​ Home – Types Of Bad Credit Mortgage Loans
Buying a​ home after a​ bankruptcy doesn’t limit the​ types of​ mortgage loans you​ can qualify for .​
If anything,​ you​ have more loan options with subprime lenders .​
However,​ depending on​ how soon your bankruptcy was resolved,​ you​ may find that you​ pay higher rates and down payments to​ secure your home financing.
Available Bad Credit Home Loans
In recent years,​ subprime lenders have come up with a​ number of​ new financing terms for home loans .​
So even with adverse credit,​ you​ can still get 100% financing or​ a​ 30 year fixed rate mortgage .​
Interest only loans and adjustable rate mortgages are also good options to​ increase your buying power.
If you​ are looking to​ secure financing over the​ conventional price caps,​ then subprime lenders can also offer you​ jumbo loans .​
All loan terms are flexible,​ as​ well as​ fees and conditions.
Hurdles Of a​ Bankruptcy
Right after a​ bankruptcy,​ your credit score will require you​ to​ put down a​ sizeable down payment with lenders,​ usually around 50% .​
But after the​ first year,​ you​ can reduce your down payment to​ just 25% .​
In two years,​ you​ can qualify for zero down and conventional rates.
It is​ only after the​ first two years of​ a​ bankruptcy that your credit score will be significantly affected .​
After that,​ financing companies look at​ other facets of​ your credit,​ such as​ payment history,​ debt ratio,​ and employment outlook.
Get a​ Better Deal With a​ Better Lender
Subprime lenders compete for your business by offering low rates and fees .​
While there are certainly some companies that would take advantage of​ your credit situation,​ you​ can protect yourself by being a​ smart consumer.
Start by researching a​ number of​ loan companies .​
Ask for loan quotes based on​ your credit and income .​
After looking at​ the​ APR and fine print,​ you​ can make a​ decision on​ which mortgage loan is​ right for you.
You can also get pre-approved for your home financing .​
Not only will it​ help you​ in​ the​ home buying process,​ but it​ will also give you​ an​ idea of​ your financing budget .​
With online lenders,​ you​ can complete your application in​ minutes and have funds available in​ as​ little as​ two weeks.




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