Loans After Bankruptcy

bad loan 2Finding home loans after bankruptcy is not impossible. After you have filed for bankruptcy, it may seem like you can never buy a home again. Many people think that with a low credit score they can never qualify for a mortgage loan. While filing for bankruptcy is not a good time in anyone’s life, it does not mean that you will never be able to secure a loan again. All you need is some good advice and some patience; you can recover. To learn more about loans after bankruptcy, click here


Buying a house after you have filed for bankruptcy is not only NOT impossible, but it has recently become easier to do. When you apply for a loan banks and mortgage lenders will look at more than your credit score. They know that your score is lacking a bit—since you have already filed for bankruptcy. However, they are going to look at two other components:


  1. Your income verification
  2. Your ability to put a down payment on the home


While your credit score will be hit hard after you file for bankruptcy, the lenders will want to know more than just your credit history. They will look primarily at your post-bankruptcy activity and how responsible you have become financially since then. This will paint them a better picture with regard to how you will repay the loan in the future.

The most important step to qualifying for a loan after you have filed for bankruptcy is to re-establish your credit score. Even if you have not yet hit an idea credit score, lenders can see the progress you have made. This will reflect well on your reliability.

Rebuilding your credit is not as difficult as it may seem.


The first thing you need to do is review your budget. You need to understand what your income is versus what debt you have. You should list your fixed expenses as well as your variable expenses. This will help you to see a clear picture of your current credit situation. There are many software programs available to help you with this such as Microsoft Money, Quicken, or online programs such as Once you have done this, you can look into reducing your current expenses or increasing your income. Following your new and improved budget will be quite an adjustment and you should fully expect to “fall off the wagon”. Be reasonable, but firm with yourself and most importantly, don’t give up just because you stray every once in a while. Before you know it, your credit score will be back up and you will be able to apply for the loan you need. Click here to learn more about applying for a loan.

The second thing you need to do is print a copy of your credit report. You are legally allowed one free copy each year of your credit report via You should ask for a copy and review it line-by-line. If there are errors on your score you should contact the agencies in writing and ask for an investigation. Be sure to keep copies of everything! click here for more information about loans after bankruptcy