After bankruptcy has been filed people believe that becoming a homeowner is impossible for at least seven to ten years when bankruptcy is no longer viewed on a credit report. This is simply not the case at all. Bankruptcy loan underwriters and brokers are authorized by the federal Financial Services Authority to specialize in mortgages for those who have filed bankruptcy.

As little as 18 to 24 months after bankruptcy debts have been discharged, a person can qualify for a home loan. Your bankruptcy history is not nearly as important to a loan officer as your ability to make a down payment and your income stability are. Your debt to income ratio is really what can make or break your ability to purchase a home after bankruptcy.

There are some helpful ways to ensure that you will be able to purchase a home after bankruptcy. Following seven simple suggestions can assist you in credit recovery for home buying. The first suggestion is to get a copy of your credit report. It has been found that 80% of credit reports contain errors severe enough to reject your ability to receive home loan approval. Suggestion two is to have these derogatory credit items removed by contacting a company such as Lexington Law. This firm is legitimate and understands how to assist you in this matter. Beware of scams offering credit recovery assistance. Suggestion three is to continue paying your bills on time. This begins to shoe creditors that you are creating solid payment history.

Suggestion four is to strongly document your rental history. Show proof of on time payments and amounts. This can help decide your mortgage price. Suggestion five is to apply for a secured credit card. This card allows you to deposit an amount into an account to secure a credit card and allows you to borrow against it to create positive payment history. Suggestion six is to prepare non-traditional trade references such as cell phone and car payment history. This is further proof of positive payment history. The final suggestion is to resist large purchases such as a vehicle. Keep your debts low to continue having a positive debt to income ratio. Following these simple guidelines can be helpful in ensuring your ability to become a homebuyer.

If you or someone you know has filed bankruptcy and is looking forward to purchasing a home, here are some guidelines that can be helpful in ensuring positive credit history for home loan qualification.

Positive Credit Guidelines

1. Get a copy of your credit report from Equifax or Transunion. It has been found that 80% of credit reports contain errors that can be serious enough to alter your chance of home loan approval.

2. Credit error repair. Contact a legitimate law firm such as Lexington Law to assist you in the proper removal of these errors. Beware of scams that offer credit repair programs.

3. Pay your bills on time. This will maintain a clean credit history and build new positive payment history.

4. Gather proof of strong rental history. How much were your rental payments and did you pay them on time? Loan officers can use this information to assist you in mortgage payments.

5. Prepare non-traditional trade references. Cell phone payments and car insurance payments do not appear on a credit report. Gathering proof of positive payment history from these sources can assist you on providing further payment history details.

6. Resist large purchases and overspending. Bankruptcy provides you the chance to begin with a clean financial slate. You want to be a smart spender and maintain a clean credit present. Don't worry about a poor payment history since this is the past.

Following these easy guidelines can help you to reach your goals of being a homeowner. Follow them diligently and you will be smiling when you make your monthly mortgage payments.