Bankruptcy
is an unfortunate situation that befalls many people today and it is not because they have not tried to keep their finances in order. There are many situations that cause people to have to file for bankruptcy such as the loss of a job, an illness, divorce, or other problems. Many times the best option for an individual is to file for bankruptcy and simply start over. The only problem is that many people are told when they do this that they will never again be able to own a home or anything of the sort. While it has been very difficult in the past to buy a home after you have filed for bankruptcy, with an FHA loan it will be possible in as little as 24 months to be purchasing a home.
Getting an FHA Loan after Bankruptcy
Many people fear after filing for bankruptcy that they will never be able to buy a home because of what they have been told or what they have heard from others. It's true; many lenders make it very difficult for individuals to buy a home after they have had a bankruptcy. With conventional loans a person must wait at least four years before they apply for a home loan and many times they would still be declined the financing because they had not been able to build their credit up to a point that was considered acceptable by the lender. So, while there was an understanding that people only had to wait for four years, this was not necessarily the case. Many people found that they were still trying to buy a home 10 or 15 years later with no luck.
An FHA loan will allow people who have filed for bankruptcy to apply for a home loan again after two years from the date that the bankruptcy was filed. Two years is 24 months in which you can take advantage of the slate being wiped clean and in this time you should be working to create excellent credit. You should get a credit card or two and you should be using them and paying them off as required and you should be maintaining all of your other bills as is required. When you do this you are showing that you are able to pay your bills and that the bankruptcy thing was a one time thing and was based more on circumstance than your inability to address your responsibilities.
If you have maintained a good credit standing since the bankruptcy you will generally find that you can apply for an FHA loan and be accepted exactly two years from the date of your bankruptcy. As long as you view your bankruptcy as a second chance to get things right you can make home ownership a reality through one of these federally insured loans. The great thing about an FHA loan is that it is one of the most affordable loans out there, so even if you don't have a huge amount of cash on hand after 24 months you will be able to get into a home and start enjoying home ownership, even though you thought or were even told that you would never be able to own a home. Mistakes happen, and bankruptcy is a mistake that shouldn't hold you back from owning a home if you are serious about fixing those mistakes and avoiding making them again in the future.
