Texas Lending Hub

Buying a home after bankruptcy in Texas is a reality for many people. By managing their finances, taking advantage of state and federal programs, and being a smart loan shopper, people with adverse credit histories are making their dreams of home ownership a reality.

Dealing With Bankruptcy In Texas

Texas has more generous bankruptcy exemptions than many other states, allowing filers to keep acreage, livestock, and farm vehicles. But a bankruptcy will still remain on your credit score for seven to ten years, depending on whether you filed for Chapter 7 or 13.

Even though a bankruptcy is on your credit file for years, it can have zero affect in as little as two years. Mortgage lenders are more interested in your current payment history on accounts, financial cash assets, and monthly income.

If you don’t know your credit status, now is a good time to check. Free credit reports are readily available online. While looking at your score, also check that all recorded information is accurate.


Taking Advantage Of Housing Programs

Both the Texas and the federal government have developed a number of homeownership programs for first time or low income home buyers. If you haven’t owned a home in three years, most programs consider you a first time home buyer.

Licensed Texas mortgage lenders can tell you if you qualify programs such as HUD, VA, or Texas Loan Star. Each program has its own benefits and requirements. For example, the Texas Loan Star Program can help you with the costs of a down payment and loan fees.

For low and moderate income family, there is also the Mortgage Credit Certificate Program. This tax break can increase your monthly income, but is dependent on qualifying mortgages.

Shopping Smart For A Mortgage

In the end, you have to do your research to be sure that you are getting a good deal on your loan. Go online to request loan estimates from a number of lenders based on your credit score and assets.

Look at all your options, including terms. For instance, that a higher rate fixed loan is cheaper in the long run than an adjustable rate with an automatic refinance in two years.