Here's a recent question I received by email:

Q: I was going through a divorce and in the middle of it, I filed for bankruptcy. The bankruptcy is in its final stages, but it is not dismissed yet. How hard would it be for me to qualify for another home? Prior to the bankruptcy and the divorce I had a credit score in the mid 700s and the chances of me going into bankruptcy was very low. Would a lender understand that I'm not a flake, but a statistic of divorce and could not afford a house that took a double income? I am saving about $2,000.00 a month for a down payment on another house. It has been two years since we split up. Things are finally coming to an end and I hate the apartment life so I am working very hard to save for another home.

A: If you are currently in the process of having the bankruptcy discharged or it has been less than two years since the date of the discharge, you will need to find a hard money lender who will likely require a hefty down payment, preferably 30-35 percent down. Also, based on today's interest rates you likely will have to get an interest rates on an adjustable rate mortgage in the high 10 percent range. Your bankruptcy reason is acceptable in the lending community, but you must have reestablished perfect credit for a minimum of two years to take advantage of a really good interest rate. It isn't impossible to get a loan - but the interest rate will be higher than you'd like.

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