California Bankruptcy Attorney - Buying a Home

Purchasing a home after bankruptcy is possible if you take the time to assess your options. By filing for a California bankruptcy, you effectively eliminate debts that could potentially prevent you from qualifying for the type of home you really want. Discharged debt does not count against your debt to income ratio, so by filing for bankruptcy, you can give yourself a better advantage when it comes to qualifying for a higher mortgage loan, if you take steps to improve your credit score after the bankruptcy discharge.

As with any other credit purchase after bankruptcy, you must be prepared to take additional steps to secure your financing. Be prepared to make a sizable down payment. If your income meets certain requirements, you may be able to take advantage of programs such as the FHA loans, or other programs. If you have the income but not the credit scores, consider alternative financing means such as a lease purchase agreement, or owner financing.

Regardless of what options you choose when it comes to buying a home after bankruptcy, you should pay careful attention to the terms listed in your mortgage. Be aware of any potential payment increases due to rising interest rates or other factors of the loan. Never sign any agreement that you don't fully understand, and don't be afraid to ask questions if the lender doesn't fully explain the agreement to your satisfaction.

Buying a home after an OC bankruptcy is a big step. Prepare yourself by making certain that your bills are paid on time, that you can demonstrate an adequate income and steady employment to qualify for the size of the home that you want, and that you have adequate resources to make your mortgage payments on time for the duration of the loan. While there are no guarantees as to how long it will take after your discharge before you are able to qualify for a loan, by taking proactive steps to keep your credit healthy, you can minimize the timeframe required for you to qualify.

If you have specific questions about buying a home after bankruptcy, we'd be happy to help you get the information you need. Contact our OC Bankruptcy Lawyers today and arrange for a free, no obligation case evaluation. The sooner you get in touch, the better your chances of being fully prepared to take advantage of the opportunities that filing for bankruptcy in CA can provide.