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Chances of being able to buy a home with a Bk on record.

Lynwood, CA |
Filed under: Chapter 7 bankruptcy

Hello, About a year ago, I filed for Chapter 7. I was able to buy back my business, so it is rightfully mine. It currently has a positive cash flow with very little liabilities. Currently, we have a home. But, there is no equity in it at this point. I recently found out that our family is expanding by two . So, I am going to need a bigger home and I will rent the smaller home. Long story short, can I use the business as collateral in order to offset the credit hit that I took with the BK? Would I be able to get a reasonable loan with very little down? I hear that now a days you need perfect credit and 20% down? Does anybody know of any home loan programs for people that filed BK? Thanks so much.

Attorney Answers 3


  1. Best answer

    With a recent bankruptcy discharge, you probably will have to go hard money, which carries higher interest rates and requires larger down payments (upwards of 40%). I don't know of any programs designed specifically for bankruptcy debtors.


  2. You need to ask lenders and mortgage brokers, not Bankruptcy lawyers.


  3. This is not so much a legal question as it is a lender qualification issue. You need to check with a few different lenders to see what they say.

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