Can you get a home loan after bankruptcy?
Did you know that you could still get credit facilities even when you are going through bankruptcy? Better still, this is a good way to rebuild your credit rating. This is because it gives you good opportunity to prove to creditors that you can be trusted with finances. Though it is not very easy to get unsecured loans at such a time, you will be surprised to find that some firms will be looking for you.
Some of the lending firms that will be more than willing to offer you a loan are mortgage firms. In fact, they will give you an unsecured loan. It is not entirely unsecured because what they will fall back on, in case you default payment, is the house you are going to buy. To improve on your credibility, there are a few things that you can do.
Once you have filed for bankruptcy, it is wise for you to open up an account and start saving. Maintain good records or the account and avoid overdrawing from it. If there are payments to be made through the account, make sure that they are timely. You will realize that with time, your credit rating will really have improved. This may take about two years.
If two years is a relatively long time or you to wait, then some firms will need some form of down payment or the mortgage. You can acquire this through borrowing from friends and relatives. If this is not adequate enough, take advantage of firms with down payment support programs like the Nehemiah program.
