If you have filed for a bankruptcy on your credit but need a mortgage to buy a new home, it was an impossible task in the old days. But now the things are looking up with bad credit becoming a norm instead of exception. Today you can easily get a mortgage even if you have a bad credit, and the lender in this case will stress on two major factors: income verification and a down payment.
After you file for bankruptcy, many lenders will not approve your mortgage application for at least 2 years since the period of the bankruptcy discharge. Once this 2-year wait is over, getting a mortgage is quite easy. Quite a few times, you can easily get 100% financing too. This is feasible provided the credit bureau has been informed about you making the timely payments, after the bankruptcy has been discharged.
If you need mortgage after bankruptcy but before 2 years, your payment record should be nearly clean once your bankruptcy is discharged. Some may even require you to make a down payment. A small amount that is about 3-5% of the loan amount can be used as a down payment and will improve your chances of getting approved.
Use the following suggestions to procure funds for the down payment for your mortgage while having money saved in the bank:
Ask the friends/relatives to lend you the money or gift it to you. Once you get the 1st mortgage, you can then apply for a 2nd or 3rd mortgage that is equal to the entire value of the house and use it repay your friends/ relatives. If you have taken the money from friends/ relatives as a loan, it is imperative that you disclose the same to the lender. Many lenders have strict laws regarding the source of funds for down payment and if you fail to inform the lender clearly, it can be a case of cheating the lender.
Take advantage of down payment assistance programs like Neighborhood Gold or the Nehemiah program. These programs are meant to assist the seller in providing you with a down payment. Taking a down payment from the seller of the property is generally illegitimate, but these programs make it legitimate. Various other down payment assistance programs provide grants and there is no need to repay the money. You can easily get the information about these programs on the Internet.
Withdrawing money from investment programs like 401K is another option. Follow the same process as given in the first solution.