Has anyone had any experience with trying to buy a home after bankruptcy?
We recently filed chapter 7 and it will be discharged at the end of
January. Has anyone had any
experience with trying to buy a home after bankruptcy? Are there special
lenders who deal with
this(do you get stuck w/high interest and have to have large down payments)?
How long after
bankruptcy do you need to wait before even trying to obtain a loan? This
seems like it's probably
hopeless to be able to buy a home after filing bankruptcy. Any advice is
much appreciated.
-The answer(s) are varied and multiple.. The most direct answer is: yes, you can
purchase a home right after filing BK.
Yes, there are 'higher' interest rates associated with a BK. How high? It
depends on several factors such as re-established credit, cash in bank, 401 k's,
IRA's etc...
How high are the rates, varies from a low of 8.5% to 13.5%, pending on situation
again. As far as the down payment goes, from 10% up to 40%.
Each case is different, yet the standards are the same. So you need to have your
case evaluated on its' merit. Generally, you can expect to pay a rate between
10.5% and 11.75% with a down payment of 15%.
Each state is different too. So without knowing all of the details, this is as
specific as I can get.
-Most lenders will tell you that you have to wait a year or two after
bankruptcy to be able to qualify at anything approaching reasonable rates.
The answer depends on your particular situation, however. I have some
clients who can qualify for a new mortgage as soon as they get their
discharge; others can't get a loan years after their discharge.
I'd suggest speaking with a mortgage broker. He or she should be able to let
you know the lay of the land in your locality.