Choosing The Right Mortgage Loan After Bankruptcy: 4 Options To Consider

There was a time when bankruptcy effectively brought to an end the financial ambitions of an individual. Unsecured loans, even modest in size, were a little too hard to get and lenders were suspicious of the intent of the applicants. But today, even getting a mortgage loan after bankruptcy is possible.For mortgage providers everywhere, the economic crises of the last few years have taken their toll. Often it is the property market that is affected most dramatically, and in an effort to keep their number of clients up, mortgage providers are willing to grant mortgage approval despite bankruptcy.Remember, while bankruptcy will always have negative connotations, certain applicants are still able to get vital funding through loans and mortgages. But what are the mortgage loan options on offer? Here are 4 of them.1. Considering Bankruptcy MortgagesThe first genuine option when seeking a mortgage loan after bankruptcy is the conveniently named Bankruptcy Mortgage. It has been designed with the express intention of helping the applicant to get back on track for credit recovery.What this option offers is a definite structure that is specifically designed for those who have had to cope with bankruptcy. Existing debts are either restructured or are even forgiven, easing the financial pressure and releasing some extra cash. This gives the borrower a chance to save a down payment. Perhaps most importantly, getting mortgage approval despite bankruptcy is more likely as a result.2. Considering The FHAThe FHA has been helping low-income earners and bad credit borrowers secure mortgage loans for decades. But it is important to realize that approval is never guaranteed, and it is not always the best option. For example, the scheme is available on selected properties, not any property.Still, the FHA does make getting a mortgage loan after bankruptcy much easier, and miraculously approval can be secured just a year after a Chapter 7 bankruptcy ruling. The only real condition is that the criteria is satisfied by the lender, then the FHA will offer their backing – thus lowering the interest rate and removing the need for a down payment.3. Considering Regular MortgagesSpecial mortgage packages are not the only option – there are some lenders still willing to grant a regular mortgage to suitable applicants. However, there are some strict criteria to meet before there can be any hope of mortgage approval despite bankruptcy.For a start, these lenders want to see details on the bankruptcy case, and any related documentation. They will also want to see a mortgage note, which will confirm that the mortgage loan agreement is genuine. Be prepared to make a large down payment (20%), as well as extra legal fees, so the deal can become quite expensive.4. Considering Mortgages For Bad Credit BorrowersFinally, for applicants who have bad credit ratings – which bankruptcy is certain to cause – it is possible to get mortgages designed for bad credit borrowers. The advantages of this option are that it is ideal for anyone seeking mortgage loans after bankruptcy.The terms of these mortgages are not ideal either, but the higher interest rate is offset by the longer lifetime of the mortgage. This means that the monthly repayment sum is kept low and affordable. For these reasons, mortgage approval despite bankruptcy is pretty easy, though affordability and a positive debt-to-income ratio are necessary too.However, after the trials created as a result of filing for bankruptcy, it is a very welcome route towards mortgage loan funds to actually buy the home that might otherwise go unsecured.