There are a few factors that will have an impact on how much money you will need to have available for down payment on a home after bankruptcy. The number one factor that will determine what your possible down payment could be, is the type of home loan you qualify for. Peoples Bank Mortgage has different home loan programs that are tailored to your specific financial needs. There are home loan programs that offer $0 down payment options if you and the property you are purchasing are able to meet the qualifying criteria.
In order for you to purchase a home during or after your bankruptcy you will possibly need funds to pay for the closing costs and the down payment as well as reserve accounts for after your closing. It is important to know the differences in the home loan programs that you have available, in order to understand their down payment requirements. Listed below are several different types of home loan programs that Peoples Bank Mortgage has to offer.
Home Loan Programs and Down Payment Requirements
VA Home Loans
Veterans and their families can possibly borrow up to 100% of a home’s value with a VA Home Loan. A VA Home loan makes it possible to have a $0 down payment after bankruptcy. VA home loans also allow the sellers to pay much of the transaction’s closing costs (up to certain limits). The primary benefit with of a VA loan is the reduced amount of money that you will bring to the closing. You will have to maintain a reserve account with the size varying depending on your qualifications.
FHA Home Loans
FHA home loans require a small down payment on the part of the home buyer, as compared to conventional mortgages which often require more money to be put down as a down payment on the loan. Additionally, gift funds are allowed as part of the down payment for an FHA home loan. In most cases FHA loans have lower interest rates as compared to other home loan programs. Due to their lower interest rates, there is not a $0 down payment option. Another benefit of applying for an FHA home loan is more flexibility in getting you qualified even with a negative credit event in your past. You will have to maintain a reserve account with the size varying depending on your qualifications.
USDA Home Loan
If you apply for an USDA home loan there is the potential to have 100% financing available for your home purchase. This can provide you with substantial savings up front and can increase your chances to own a home after bankruptcy. Similar to FHA loans, you may use gift funds towards closing costs and seller concessions. USDA home loans are unique to rural areas and a great opportunity to borrowers who live outside metropolitan areas. You will have to maintain a reserve account with the size varying depending on your qualifications.
Jumbo-Portfolio Home Loan Programs
A jumbo mortgage is a type of home loan with an amount that exceeds conforming loan limits set by Fannie Mae & Freddie Mac. There are qualifying criteria that you must meet such as credit score, income, and a down payment. Typically, with a jumbo loan program you will need to have approximately 20% of the home’s value available for a down payment after bankruptcy. However, depending on the home loan program you qualify for the down payment amount can vary. You will have to maintain a reserve account with the size varying depending on your qualifications.
Take Your First Step and Consult with our Mortgage Consultants
Our team at Peoples Bank Mortgage can help explain the different home loan programs that are available to you. Additionally, we will outline their corresponding down payment requirements. After helping thousands of individuals and families across the country, we have developed the knowledge and experience to help you navigate a path to your goal of owning a home after bankruptcy.
Select an option of Purchase or Refinance below and schedule a free consultation with one of knowledgeable Mortgage Consultants.
Or call 843-606-6058 now to speak with a member from our mortgage division.