With the recent economic downturn not to mention the home foreclosure crisis, the mortgage lenders all around the country have become extremely careful and stringent in giving out loans. With world still reeling from the shock of recession loan and mortgage lenders know give out the hardest possible loan approval guidelines as well as the most strict application process that focus majorly on sensitive issues like credit history and scores, down payments as well as debt-to-income ratios.

Due to this reason people or families who have recently applied for bankruptcy feel that their dream of being a homeowner is to be kept on the back burner for at least six to ten years. But giving up so easily without even researching the matter deeply is a foolish and hasty thing to do give the fact that the stigmas as well as the negative assumptions related to bankruptcy proceedings today are not as bad as they were 10 years ago.

How to Apply for USDA Home Loan after Bankruptcy

USDA loans can work as a life saver for those of you who have the blot of bankruptcy on your credit history. Specifically designed by the Department of Agriculture, this loan is given out to help in rural development. Since this loan program is backed and supported by the government body and offered by the federal government, the USDA loan eligibility criteria is far more accommodating to financial risks like bankruptcy than the other traditional loans.

In order to be eligible for a USDA loan when you have filed for bankruptcy, the criteria is that you need to be discharged from the bankruptcy for 3 years in case of Chapter 7 bankruptcy. Your chances of qualifying for USDA loan are even brighter if your bankruptcy is the Chapter 13 type. Under the eligibility criteria for USDA loans the waiting period is only one year after the applicant have made all the court approved payments on time and is discharged and restructuring process.