Can I Buy an Orlando Home After a Bankruptcy?
Did you know it is possible to buy an Orlando home with a Bankruptcy on your credit report? In July 2011 one of my clients purchased a home with a Bankruptcy on her record!
Here is the difficult part:
She spoke with 3 other Realtors before she was referred to me. The other Realtors were not aware she had options on buying a home. As always important considerations must be taken when seeking an Orlando Home After a Bankruptcy.
Studies prove that after 2 years from the date of a bankruptcy discharge, bankruptcy debtors may qualify for a loan on the same terms as if they had not filed bankruptcy. A lender will be more interested in your down payment, the stability of your income, and the relationship between the loan payments and your monthly income than your past financial troubles.
Part of obtaining an Orlando Home After a Bankruptcy is being able to obtain credit cards shortly after the discharge date of the bankruptcy. Be aware that credit is available to the recently bankrupt. It may be more expensive with higher interest rates and lower credit limits but it will be offered. A secured credit card is usually available post bankruptcy at lower rates than unsecured cards.
Rebuilding credit worthiness after bankruptcy is a matter of seeking two secured credit cards and treating that credit with respect. Using credit cautiously and paying on time will show consistent payment history after a bankruptcy and raise your credit score.
Planning a two year goal to purchase a home after an Orlando Bankruptcy is very important. In most cases an Orlando Home Buyer must obtain a minimum median credit score of 640 for lenders to consider approving a loan to purchase.
Federal Housing Administration's policy for qualifying for a home loan:
- Twenty four months have passed since the bankruptcy has been discharged.
- Any outstanding tax liens have been paid or the appropriate arrangements have been made via a repayment plan on file with the IRS or Department of Revenue.
- Three years have passed since a foreclosure or a deed-in-lieu has been resolved.
- All judgments have been paid.
The Federal Housing Administration is a government entity that sets guidelines for lenders to lend money to an Orlando Buyer who asks Can I Buy an Orlando Home After a Bankruptcy?
Obtaining the down payment:
An Orlando home buyer may ask how do they come up with the down payment to purchase an Orlando home. Here are a few solutions to that important question.
- Save $200 per month for 24 months and amass $4800.00. This will help to qualify for a $137,000 purchase price. Currently (July 2011) the median price of an Orlando home is $110,000. Only $160 per month buys the median price!
- Qualify for a down payment assistance program that only requires $1,000 of the Orlando Home Buyer's funds.
- Obtain a gift from a family member. The gift will be verified by the lender's underwriter. Underwriter's ultimately decide if the lender will loan you the money to purchase your Orlando home.
So next time you want to ask Can I Buy an Orlando Home After a Bankruptcy you can say YES!
If you need assistance in buying an Orlando home after your bankruptcy has been discharged call your local Orlando Realtor - Thomas Staples at (407) 619-6249 or email firstname.lastname@example.org.