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Applying for a Mortgage after a Bankruptcy

Qualifying for a home mortgage with a bankruptcy on your credit history requires time and money. Yet by understanding the requirements to get a mortgage after a bankruptcy and by carefully rebuilding your credit standing, you can apply for a loan and buy a home. 
Your Credit Score
The three main U.S. credit bureaus--Equifax, Experian and TransUnion--maintain your credit history. Using that history, plus its own proprietary equation, the Fair Isaac Corp. calculates your FICO credit score somewhere between 850 and 300 points. Anything above 700 points is good to excellent, with... more

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Mortgages

In addition to mortgage loans for home purchases, there are also other loans available for various purposes that use the home for collateral.

Rates

Mortgage interest rates are determined by credit history strength, the number of points you pay, the size of your down payment and the type of loan program you choose.

Home Buying

Obtaining funding is crucial to buying a home. This requires applying for a mortgage, choosing a house that meets the appraisal standards, and determining the amount of the down payment.

Loans

There are dozens of different types of mortgage loan programs. They have been created to suit the varying needs of homebuyers.

Moving

When making a big move, it's essential to find out as much as possible about the schools, the neighborhoods, the housing costs and the community resources.

MORE MORTGAGE ARTICLES

What Are Typical Mortgage Down Payments?

Traditional mortgage down payments have always been 10 to 25 percent of the total purchase price of the property. more

Should You Refinance? Make Sure the Timing is Right

Deciding whether or not you should refinance depends on your personal financial situation. If interest rates are lower today than they were when you first took out your mortgage, refinancing makes sense. more

3 Common Short Sale Mistakes

A real estate short sale can be a win-win situation for everyone involved, but there are common short sale mistakes to avoid if you want to close the deal. more

The Mortgage101 Blog

FROM THE MORTGAGE101 BLOG

Financial Firms Offer CashOut Loans Without Debt

In a new type of home equity loan, two California-based financial companies are allowing homeowners to cash out their home’s equity without the burden of debt or interest fee of traditional loans. EquityKey  and FirstREX  both offer these types of mortgage loans in exchange for a portion of the future equity of the home. The way it works is that when a homeowner wants a loan, they receive a large lump sum of money to be used any way they want. In return the homeowner sell a percentage of their home’s future appreciation value. For example, you might take out about $50,000 in equity and agree to turn over 50 percent of your equity appreciation when you sell your home. If you sell in 15 years and the home has gained $200,000, you have to give the lender $100,000 at the close of the sale. “We refer to it as a real estate participation agreement, because the key difference between debt and equity is while we will participate in the upside, we have no absolute right of getting paid back the initial principle investment,” said Jeff Nash, co-founder of EquityKey in a Forbes interview. “If initial prices go lower, we reduce the amount we are owed, until we owe nothing.” This type of equity loan can also be used as a down payment for some buyers. They sell a portion of future equity to one of these financial firms and they receive a chunk of money to contribute to a down payment on a mortgage with a different lender. There may be some cases where the borrower would owe money out-of-pocket to the equity loan lender. If they sell within a few years of the agreement when there has been little or no appreciation, the borrower may be required to repay some of the cash. The EquityKey and FirstREX models can be a good fit for those who plan to stay a long time in their homes but do not expect the market to appreciate substantially. It can also be good for first-time buyers looking for down payment help. “Their prospects in the future may be wonderful, but their cold cash on the spot is not wonderful,” said David Blitzer of S&P Dow Jones Indices. “So if you can do things like let them monetize in advance some of the future value of the house, that’s big plus.” more