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Credit card debt amongst homeowners is at an all time high in America, It is so bad many home owners turn to bankruptcy to eliminate their bills. Many home owners wonder if they will ever be able to get a mortgage after a bankruptcy and because of this never file bankruptcy and escape their debt? Although they have more restrictions then a standard conforming mortgage you can still get a mortgage after bankruptcy to either buy a new home or refinance your current residence even 1 day out of a chapter 7.

Sub prime lenders are the main source for bankruptcy mortgages in the united states. They sell theses mortgages to the consumer through mortgage brokers across the country. The mortgage brokers will be able to get you the best rate and terms for a bankruptcy mortgage over any local lenders in your area. In fact many local banks and credit unions offer no bankruptcy mortgage programs at all, for even the most loyal customer! However because they carry a high risk to the lender bankruptcy mortgages will have interest rates at or above 10% and usually have origination and or lender fees up to 4% of the loan amount. There will also be restrictions on how much equity you can use, many bankruptcy mortgages allow only 80-90% of the appraised value to be borrowed. These negatives are a small price to pay really when you consider what you are getting so soon after a bankruptcy.

Even with the higher interest rates, higher fees and LTV restrictions bankruptcy mortgages can be a very useful tool to get your credit back on track. In fact noting will do more good to your credit score then a mortgage that is always paid on time. Pay on time for 2 years and you should be able to refinance to a much lower rate mortgage with better terms.

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