St. Louis Bankruptcy Lawyer: Can I get a Mortgage After Bankruptcy?

Some people hesitate to contact a St. Louis Bankruptcy Lawyer because they worry that if they file for bankruptcy, they will be ineligible for a mortgage. Since owning a home is the American Dream, many people think they will be forever denied this opportunity. Fortunately, this is not the case. In fact, it may even make it easier to someday buy a home because a person will be out of debt and can actually save for a home. If you are worried that filing will prevent you from buying a home, this fear is completely unfounded.

FHA Loans Explained by a St. Louis Bankruptcy Lawyer

One of the most popular loans for first time home buyers is an FHA Loan. These loans are backed by the federal government, which makes lenders more likely to give them to people with marginal credit. A person will be eligible for an FHA Loan two years after a Chapter 7 discharge from a St. Louis Bankruptcy Lawyer (plus any additional time imposed by the lender).

An FHA Loan requires a minimum of 3.5% down, as opposed to the traditional 20%. If a person puts this amount (or any amount less than the 20%) down, they will be required to purchase private mortgage insurance, which is added on to the monthly mortgage payment. While this insurance is not prohibitively expense, it is not applied to the principal or interest, so a person will not build equity with this additional payment.

If you would like to buy a home but worry that debt makes that impossible, a St. Louis Bankruptcy Lawyer can help. At Westbrook Law Group, we will explain the advantages and disadvantages of bankruptcy as it pertains to buying a home so you can make the best choice for you and your family. To learn more, contact Westbrook Law Group today for a free consultation.

Have debt problems? Contact a St. Louis Bankruptcy Lawyer

Call Westbrook Law Group today at (636) 493-9231

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