One of the most popular home loans for buyers of modest income is called an FHA loan. These loans are popular because they allow a person to put less money down when purchasing a home. A typical mortgage requires 20% down while an FHA loan requires as little as 3.5%. Obviously, this is appealing to people of modest means because it allows a person to buy a home that they would otherwise be unable to. Lenders like it because the loans are backed by the federal government, mitigating the risk of default. For those who have filed bankruptcy, an FHA loan can be a great option once they have rebuilt their credit. A bankruptcy attorney can explain what to expect once your bankruptcy is complete.
This is a loan that many people obtain after filing Chapter 7 bankruptcy. There is a minimum two year waiting “seasoning” period after your discharge. During this time, a debtor can save money and work to rebuild their credit. Once the two years have passed and a person has saved up enough money, they may be in a position to apply for this loan.
Bankruptcy is the first step on the path towards potentially obtaining a home. Once you have discharged your unsecured, non-priority debt, you can begin to save money for your dream home. With responsible borrowing, it is entirely possible to obtain a home just two years after your bankruptcy discharge. A bankruptcy attorney can explain your options during this process.
At Westbrook Law Group, we have helped many clients get the help they need with Chapter 7 bankruptcy. We know how difficult it can be to deal with overwhelming debt and we are here to help. If you need help with your debt, contact Westbrook Law Group today for a free consultation.