Buy A House After Bankruptcy

Hello and welcome to our Blog! Today we’re going to answer a question that I get all the time…
Can I buy a house after a bankruptcy discharge? Is there a waiting period to buy a house after a bankruptcy filing? Now I know that a lot of people are terrified of the idea of going through bankruptcy especially when thinking about the idea of buying a house after bankruptcy. But with the right knowledge and a little bit of elbow grease, you can buy a house after bankruptcy. We made this blog and added a video to help you learn how to buy a house fresh after your bankruptcy. Let’s jump right into it!

Here’s the thing about conventional mortgage loans. The fact that you have a job, or at least a job history, generally helps your chances of getting a conventional mortgage. However, you can no longer have a bad credit history once you go through bankruptcy.

When you have bad credit, you’re at a disadvantage when buying a home. Even with the best credit repair, you’re likely to be turned down if you don’t have a history of timely payments. If you’re young, you may not have enough income to make the payments without taking on a second job. Or maybe you’re underwater on a previous home and can’t get a mortgage after bankruptcy. Whatever the reason, there’s a good chance you’re not going to be able to buy a home using a traditional Fannie Mae loan.

The conventional loan process for a conventional mortgage is a simple three-step process.

Step 1: Determine how much money you can afford to borrow, or qualify for, based on your income.

Step 2: Determine how much house you can afford to buy, based on your budget and debt.

Step 3: Find a Knowledgable Realtor

Step 4: Apply for a mortgage and see what type of loan fits your needs. There are other options, but for most people, the conventional loan process works well. 

When it comes to buying a home, many people turn to private lenders when they can’t afford a mortgage on their own. However, this option isn’t always an easy choice — especially for those who have been through a bad financial situation, or are in debt. If you’ve had a foreclosure, bankruptcy or other financial issues, you may not be able to get a mortgage from the bank or credit union you used before.

How To Get a Home Loan With a 580 Credit Score

In This video we are going to show you how to get a home loan even with a 580 minimum credit score. Now, you are probably wondering why anyone would want to buy a house when they have bad credit. There are a lot of reasons why someone with bad credit would want a house, and we’re going to talk about those reasons in this video. 

Who Fannie Mae and Freddie Mac

Fannie Mae (the Federal National Mortgage Association) and Freddie Mac (the Federal Home Loan Mortgage Corporation) are U.S.-based government-sponsored enterprises (GSEs), in which the U.S. government currently owns the majority (about 90%) of the common stock.

With a 580 credit score, you may not qualify for a traditional home loan. How ever you can try to apply for a loan through Fannie Mac and the online home loan application will give you an idea of the type of loan you can obtain.

Some advantages and disadvantages of Fannie Mae and Freddie Mac are that they are publicly traded companies; both are subject to strict oversight by the U.S. Department of Housing and Urban Development, the Federal Reserve Board, and the Office of Federal Housing Enterprise Oversight; both are regulated like any other bank by the Office of the Comptroller; and both are subject to the same criminal and civil laws as any other financial institution.

You can talk to a Freddie Mac counselor who can help you determine which loan program is best for you and your situation, guide you through the steps of applying, and explain the mortgage lenders available to you.

Does Rent To Own Homes Work

Rent to own homes work by providing a buyer and seller the opportunity to come to agreement on the purchase price and contract terms via the contract terms.
The RTO is a great option for people with bad credit and a lot of unsecured debts or have maxed out credit cards but still desire to purchase a home. They provide a long-term solution for people who want to buy a house but don’t have enough money saved for the downpayment or going trough the bankruptcy process. In addition to providing the benefits of a traditional mortgage, RTO’s provide the value of home ownership without paying the relatively expensive up front costs associated with conventional mortgage loan.

Most people buy their first house using a 10% down payment, which in some cases need downpayment types of loans. In fact, if you are just getting started home shopping, you may have to make a larger down payment than you would using a rent to own lease. However, with a rent to own lease, you do not have to put huge down a down payment, and you can buy your house sooner, which can positively impact your credit scores. Filing for bankruptcy might not be as bad as it seems. Sometimes it can be a four-year waiting period to get a loan after bankruptcy.  
With lease to own option, this is not necessarily true. Text 678-929-5389 for more info.


What Are the Credit Requirements To Get a Rent To Own House

When potential borrowers think of a mortgage, you probably think of a loan that requires a large down payment and a long application process. However, there are plenty of other types of private loans that require much less money down and shorter terms. Credit requirements for these types of loans are not as stringent as a standard home loan, and you can qualify in a much shorter time.  Credit requirements for these loans are typically much lower and as such it is possible to qualify for theses installment loans in a matter of weeks rather than months.  Attaining credit is not the key to success, but having poor credit can prevent you from getting the best government-backed loans available.  

If interested in qualifying for a traditional mortgage or rent to own lease option, text your name and best email address to 678-929-5389.