Declaring bankruptcy doesn’t need to put a damper on buying a home. The loan specialists have facilitated necessities, opening the entryway for bankruptcy filers to get once more into a home sooner. You’ll find out about normal mortgage loan and the separate qualification necessities for bankruptcy filers.
Let’s take a look at getting a Conventional Loan, FHA Loan and VA Loan after a bankruptcy to buy a home in California.
Getting a Conventional Loan After a BANKRUPTCY TO BUY A HOME
All you have to do is meet the guidelines of the wait period to buy a home, good credit is a must with conventional loans among other things.
Standard financing is 20% down. Special programs offer up to 95% financing and even as little as 3% down or even 1st Time Buyer Programs. Full income qualification and good credit is a must. These loans offer the best interest rates.
Getting a VA Loan After a BANKRUPTCY TO BUY A HOME
VA loan is the number one benefit afforded to veterans and their spouses through the Veterans Administration. It offers a zero down payment feature. Once you have met the wait period you must adhere to all the other guidelines to qualify. Most Veterans do best by keeping their credit score above 620 to get the best rates, however at TDR Mortgage, we have had success with ficos as low as 580. Note that we do our best to help raise these scores so you can take advantage of a better interest rate when we can.
Getting a FHA Loan After a BANKRUPTCY TO BUY A HOME
FHA – (Federal Housing Administration) 2 year Wait Period. Government insured loan with 3.5% down payment, used widely in conjunction with the CalHFA Home Loan Product (Buyer Program).
This loan program is MOST generous after a Bankruptcy and most used because of the short wait time and high debt ratio it allows. FHA even has a shorter wait time on a Chapter 13 of only 1 year, but you need the courts permission and often that can be a chore. Call us for more info at 909-920-3500.
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