Bankruptcy can be a serious black mark on your credit report. It will make obtaining loans very difficult but not impossible. Bankruptcy can actually help you get a fresh start and eradicate debts owed in the past. Cleaning up credit will make it easier to qualify for a mobile home loan as long as you can prove you are financially responsible.
Improve your credit score after filing for bankruptcy. One of the most important things lending institutions are looking for is financial responsibility. After a bankruptcy, you will need to make timely payments, obtain a secured credit card or two, and keep a low debt to income ratio.
By opening a secured credit card, you can improve credit history and increase your FICO score. This score is what lenders look at when determining trustworthiness for a home loan. Keep a low balance on this card or any other credit card you have. Running up a high debt or maxing out your card will lower your credit score. Make payments on time on all of your credit cards as well as other bills you must pay frequently.
Save enough money for a down payment on a mobile home. The likelihood of qualifying for a "no money down" loan for a home after bankruptcy is very slim. It is standard to place 10-20% of the mobile home cost as a down payment. With a bankruptcy, you may need more like 25-50% of the total cost. The more money you can put down, the more likely you are to get financed.
Prove that you have a steady income. A regular income from an employer that you have been with for a long period of time will cast a favorable light on you. Someone who has only had a job for a few months, receives sporadic payments such as those with freelancers and the self employed, and has job-hopped will have a more difficult time obtaining financing for a mobile home. It may still be possible, but you and your lender want to be certain that you can make the regular monthly mortgage payments.
Be patient if you are unable to get reasonable financing. Sometimes it is better to wait at least two years after filing bankruptcy so your credit score has time to improve. If your credit history is stable after that period of time, you are likely to receive a better loan rate than if you try to buy immediately after bankruptcy.