Are you considering filing for bankruptcy, but are concerned about how buying a house after bankruptcy works? Maybe you have already filed for bankruptcy and you want to know what to expect when you try to buy a home.
There are ways to buy a house even if you have had a bankruptcy, but you need to know what to expect.
First, when you file for bankruptcy you will ruin your credit.
It will take a couple years to see your credit get back to a level that will allow you to even come close to purchasing a home.
This is not a big deal because most banks and lenders will not even work with you until your bankruptcy is 2 years old or more anyway.
Second, you will have to start saving right away.
They will want to see a percentage around 20% that has been in your bank account for a couple of months.
This will be your down payment.
They will also want to see that you have around 2 to 4 months worth of bills saved and have had it saved for a couple of months as well.
Last, you will not get the best interest rate or fees.
You are considered a high risk when you have had a bankruptcy so lenders and banks are going to charge you a higher interest rate than someone that has not had any type of bankruptcy.
This does not make buying a house after bankruptcy impossible, but it will make it more expensive.