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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