Bankruptcy and Buying a Home - 3 Benefits to Buying a Home After Bankruptcy

 


Visitors: 2,371

If you have filed bankruptcy recently, you may wonder if you can get approved for a home loan. You may also wonder if buying a home after a recent bankruptcy is a good idea for you.

While a bankruptcy can make getting approved for a mortgage loan more difficult, it is still possible to get approved for a mortgage loan. In fact, there are more and more bad credit loan programs coming out all the time. Subprime lenders are focusing more on helping individuals with poor credit acheive home ownership. This is happening mostly because bankruptcies are still on the rise and there is an increasing number of people with bad credit who are looking for home financing.

Here are some reasons to consider home ownership after a bankruptcy:

1. Increase Your Credit Score - When you make your payments regularly, you improve your credit rating. Once your pre-payment penalty period is over, you should be able to refinance your mortgage loan for a much lower interest rate. After your bankruptcy has been discharged for over 2-3 years, you should have a much easier time qualifying for a lower interest rate mortgage loan.

2. Accrue Equity In Your Home - If you are just making rent payments, you are throwing your monthly payments away. When you own a home, over time, home values increase and you are working toward owning an asset.

3. Take Out An Equity Loan To Consolidate Debt or Get Needed Extra Cash - Once you have bought your house, as soon as 6 months or so later, you might be able to take out an equity loan on your home and consolidate any other debt that you might have since your bankruptcy or debt that could not be included in your bankruptcy. Taxes and student loans will not be discharged in a bankruptcy. You may also want to use the extra cash to invest in a business venture or for needed home improvement.

To view our list of recommended lenders online for bad credit mortgage loans, visit this page: Recommended Poor Credit Mortgage Lenders Online .

Carrie Reeder is the owner of ABC Loan Guide , an informational website about various types of loans.

(384)

Article Source:


 
Rate this Article: 
 
Buying a Home After Bankruptcy - How Long Should You Wait to Buy?
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Buying a Home after Bankruptcy - How to Buy a Home with a Low Credit Score

by: Carrie Reeder (December 05, 2005) 
(Finance/Bankruptcy)

Bankruptcy and Buying a Home

by: Carrie Reeder (June 16, 2005) 
(Finance/Bankruptcy)

Buying a Home After Bankruptcy

by: R. Lawrence Anderson (October 30, 2005) 
(Finance/Credit)

Bankruptcy and Buying a Home

by: Clark Hunter (January 17, 2007) 
(Finance)

Buying A Home After Filing Bankruptcy

by: Carrie Reeder (November 17, 2005) 
(Finance/Mortgage Refinance)

Bankruptcy and Buying a Home - Can You Still Get Approved?

by: Carrie Reeder (November 17, 2005) 
(Finance/Mortgage Refinance)

Personal Bankruptcy and Home Buying

by: Jeff Lakie (October 23, 2006) 
(Finance)

Buying A Home After Bankruptcy - When Is It Smart To Buy?

by: Carrie Reeder (November 03, 2005) 
(Finance/Mortgage Refinance)

Buying a Home After Bankruptcy - How to Improve Your Chances of Getting Approved

by: Carrie Reeder (January 04, 2006) 
(Finance/Mortgage Refinance)

Buying a Home After Bankruptcy - How Long Should You Wait to Buy?

by: Carrie Reeder (November 04, 2005) 
(Finance/Mortgage Refinance)