Because of the credit crunch, getting a home loan has become very difficult. Having a good credit is also not a sure ticket to a mortgage loan. The problem becomes more complicated if you have recently filed for a bankruptcy.

Fortunately, it is still possible to reestablish your credit and achieve new financial integrity. So do not lose hope because you can still own a home after a bankruptcy. There are very specific underwriting guidelines for getting a mortgage loan after a bankruptcy. These guidelines were defined by the Housing and Urban Development, Veteran Administration, Fannie Mae and Freddie Mac, and Ginnie Mae.

Home Loan

You have to take note though that getting a home loan after a bankruptcy is not easy but it can be accomplished as long as you know the rules.

Understand the Type of Bankruptcy You Filed

For Chapter 7 bankruptcy, you have to wait at least two years from the date of your discharge before you can qualify for a new mortgage loan. If you had a foreclosure, the minimum time would go up to three years. Remember that bankruptcy filing will not protect you from foreclosure. This is a common misconception that you need to understand.

If you filed for Chapter 13, there would be more options available for you. Some of those who filed for Chapter 13 and showed diligence in paying their debts can quickly qualify for a mortgage loan after one year only. However, the approval of your bankruptcy trustee is still required.

Steps to Reestablish Your Credit

You have to begin credit restoration immediately while you are waiting to become eligible again for a mortgage loan. You need to build new positive accounts as quickly as possible. You have to carefully plan for your credit restoration and the process should begin right after your discharge.

As much as possible, you have to establish new credit without going into new debts. Achieving this feat requires careful and long term planning. In order to significantly recover your good credit rating, you must build at least four to six active and positive accounts. This is the reason why you need to start immediately to make the process easier.

After the meltdown of the credit market, many people think that getting a loan with a bad credit is already impossible. To some extent, the sub prime market is already a thing of past. But there are new options for you to get a loan even if you have bad credit. These are the FHA mortgage and the USDA Rural Housing and Farmer's Home Loans.

But do take note that even these options have strict underwriting guidelines. The guidelines are not as aggressive as before. So be prepared to encounter some challenges when applying for a new home loan.

A few years back, FHA loans can be obtained even if your credit score was below average. You can get such loans with a 0 down payment. This is not possible anymore because most FHA lenders require at least 620 credit score and 3.5 percent down payments.