Home Loans after Bankruptcy

Bankruptcy can be a devastating blow to anyone who must take this drastic step to remedy financial problems. In the past, many financial professionals have told customers with past bankruptcies that it will take two years at a minimum before they can apply for a home loan. However, many companies now will help you find a home loan to fit your needs and budget, even if you have a bankruptcy in your recent past.

Traditionally, if you went through bankruptcy, your credit rating was drastically reduced, making it difficult to secure any sort of loan. Those loans that were available were often very high interest, with the justification that the high interest rate would offset the risk of issuing a loan to a person with poor credit.

Bankruptcy still is harmful to your credit rating. However, with the help of a mortgage broker, you can find a loan tailored for those who have undergone bankruptcy. Look for a mortgage broker who specializes in bad credit mortgages, or in mortgages after bankruptcy. More and more loans of this type are available, allowing you to secure a mortgage and make it possible for you to purchase the home you've always dreamed of.