Summary: Getting a mortgage after bankruptcy requires you to work hard to reestablish good credit.
Carl, we would love to build our own house.
We have plans for our dream house all picked out and know where we would like to build.
The problem is, a few years ago we declared bankruptcy.
My job was outsourced and I had trouble finding a new one that paid a decent salary.
The bills piled up and we had no choice but to declare bankruptcy.
I have a good job now, and have had it for a little over three years.
We don't have many debts, just one car and one credit card, plus our rent.
Is there any hope of getting a loan to build?
Bankruptcy is not the end of the world. Almost everyone has ups & downs in their financial life. With a little work, bad credit need not last a long time.
It is what you have done since your bankruptcy that counts. Long before the bankruptcy drops off your credit report (10 years), you could be qualifying for homeowner loans with good rates and terms.
With at least two years from your discharge of bankruptcy and reestablished credit with improved credit scores you should be in good enough financial shape to apply for a construction loan or a mortgage to buy a home.
This surprises many people, but I have seen people work very hard to get their credit reestablished and in fact, get their credit scores up in the 700's in a very short period of time.
This impresses mortgage lenders, including construction lenders.
Good Luck, Carl Heldmann