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By Carrie Reeder
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.
About The Author: Visit
www.abcloanguide.com/lessthanperfectcredit.shtml for a
list of after bankruptcy mortgage lenders. View our
recommended
lenders to help you buy a home after bankruptcy.
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