One of the nagging concerns and frequently asked questions by people who are considering bankruptcy is: “Will bankruptcy keep me from obtaining a mortgage?”  The answer is resounding “No!”  Bankruptcy need not keep you from qualifying for mortgage financing.

    In fact, a post-bankruptcy application is viewed more favorably than derogatory credit reports of judgments, or late payments on credit cards or car leases.  The reason is that the applicant is demonstrating willingness to begin afresh and to establish new credit.  We realize that such an applicant is trying to rebuilt his or her financial situation.  In short, an applicant may be regarded as a better credit risk after bankruptcy than just before.

    Whether you want to buy a new home, refinance, an existing mortgage, consolidate debts, make home improvements, or find money for college tuition-or have some other reason-there is likely to be a loan available to you, depending on your specific situation.

    How much is required as a down payment toward purchase of a new home?  That depends on a number of factors.  The figure may be as high as 20 percent or as low as 3 percent.  Two of the factors that determine the size of that down payment are how long it has been since the discharge of bankruptcy and whether new credit has been established.

    Bankruptcy does not necessarily mean that you will have to pay a higher rate for your loan.  Again, every situation is different.  You will probably be able to obtain a larger mortgage than you expected.  The bottom line is that even if you are fresh out of bankruptcy, there is probably a suitable mortgage waiting for you.