| The purpose of bankruptcy is to give the debtor a | | | | could convince the creditor. A large down payment |
| new start in his life by repaying creditors in a | | | | might impress the lender, and he may offer a lower |
| systematic way. Thus, bankruptcy does not prevent | | | | interest rate. PMI is the other factor that would be |
| anybody from taking a loan. Today, the lending rules | | | | involved, due to the poor credit history. Avoid |
| are becoming much more relaxed, and you should not | | | | mortgages with two to three years of prepayment |
| worry that you have lost your dream to buy a home | | | | penalties. Remember, the rates on mortgage after |
| or acquire a property even after you have gone | | | | insolvency may be up to 12 times higher than that of |
| bankrupt.A second mortgage after bankruptcy | | | | the regular mortgage.If you plan to get a mortgage |
| requires at least two years waiting on part of the | | | | within two years of bankruptcy discharge, you have to |
| borrower. He should also pay all the bills on time during | | | | provide evidence for the flawless on-time payments |
| this period and save for the down payment amount, if | | | | you have made since your bankruptcy. But after the |
| possible. One fact that you have to keep in mind is | | | | two-year waiting period, it is easy to get a mortgage |
| that you may not qualify for the best interest rates, but | | | | with a small down payment, and you may even qualify |
| your determined efforts to re-establish your credit | | | | for a 100% mortgage. |