Bankruptcy Does Not Necessarily Preclude Homeownership
"It is not because they have not attempted to keep their finances in order that many people today find themselves in a position of bankruptcy. There are numerous reasons why individuals must file for bankruptcy, including job loss, illness, divorce, and other problems. Frequently, an individual's best option is to declare insolvency and start over. When doing so, however, many individuals are told they will never again be able to own a home or anything of the type. With an FHA loan, it will be possible to purchase a property as quickly as 24 months after declaring bankruptcy, whereas in the past it was extremely difficult.Getting an FHA Loan after BankruptcyAfter declaring bankruptcy, many individuals fear they will never be able to purchase a property because of what they have been told or heard from others. It is true that many lenders make it extremely difficult for individuals who have filed for bankruptcy to purchase a residence. With conventional loans, a person must wait at least four years before applying for a mortgage, and they are often denied because they were unable to establish credit to the lender's satisfaction. So, while it was believed that individuals would only have to wait four years, this was not always the case. Ten or fifteen years later, many individuals were still unsuccessfully attempting to purchase a home.After two years from the date the bankruptcy was filed, individuals who have filed for bankruptcy are eligible to apply for an FHA loan again. Two years is twenty-four months during which you can benefit from a clean slate, and you should use this time to establish outstanding credit. You should obtain one or two credit cards, use them and pay them off as required, in addition to maintaining all of your other obligations as required. When you do this, you demonstrate that you are able to pay your expenses and that your bankruptcy was a one-time event caused by circumstances rather than your inability to fulfill your obligations.If you have maintained a good credit rating since the discharge of your bankruptcy, you can typically file for an FHA loan exactly two years after the discharge date. As long as you view your bankruptcy as a second opportunity to make things right, one of these federally insured loans can make homeownership a reality. The great thing about an FHA loan is that it is one of the most affordable loans available, so even if you don't have a lot of cash on hand, after 24 months you will be able to get into a home and begin enjoying home ownership, even if you thought or were told you would never be able to do so. Bankruptcy is a mistake that should not prevent you from purchasing a home if you are committed to correcting your errors and avoiding making them in the future.
" - https://www.affordablecebu.com/
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"Bankruptcy Does Not Necessarily Preclude Homeownership"
was written by Mary
under the Finance / Wealth
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comments. The article was created on 03 June 2023
and updated on 03 June 2023