Home loan for ex Bankrupt

My brother was discharged from Bankruptcy a year ago. In those three years he has saved, paid his bills on time, changed his views on credit and has realised his mistakes.

Will he be able to borrow for his own home now he is discharged? He has saved a good amount so would be looking for a lend of 80% or less.

 

Yes, as long as he meets income requirements etc. there are nonconforming lenders who specialise with ex bankrupts and many 'normal' lenders will lend to ex bankrupts after they have been out for a period.

 

Thanks for that. So it is possible for him to get a loan now? With a nonconforming lender?

 

It is possible but a nonconforming lender will require larger deposits and charge higher rates and fees.

 

If he waits 2 years he will have main steam options.

 

Definitely possible dependent on his individual circumstances. He may have to accept higher costs for the mortgage initially so the balance is whether its worth sitting on the sidelines until his file is completely clear.

 

Thank you. Is that 2 years after discharge or 3? What's happens in the situation of an early discharge? Would you still need to wait the full 3?

 

Thank you. From what I've heard it is on the NPII indefinitely which would impair his future borrowing forever. Do most lenders look at this or go by the credit file?

 

2 years after discharge. Still shows on credit report, still needs an explanation. I've had experience with less than two years, with strong applicants and a good story.
Remember they could go Non confirming initially and then refinance to a normal lender after 6 or 12 months.
A discharged bankrupt with 12 months of good repayment history doesn't have much trouble.

 

Thank you Tobe. He will be happy to hear this.

 

A good story in Bankruptcy?

 

ie as an exbankrupt you first get a loan with a specialist lender who will accept the loan. You might pay 6.x% for the loan and a couple grand in fees initially and then you sit there and ensure you pay it perfectly for 12 months. After this history you then refinance the loan from the specialist lender to a mainstream lender.

 

Illness, or factors outside the control of the person led to bankruptcy rather than didn't want to pay, or just hid their head in the sand etc.