A bankruptcy filing delivers a devastating blow to your credit and FICO score, but it doesnt mean you have to wait 10 years before you can qualify for a mortgage. Many consumers who have filed for bankruptcy have been able to obtain a mortgage as soon as two years after their bankruptcy is discharged, although it is often at a slightly higher rate than someone qualifying for a prime or "A-paper" loan.

While credit card companies may care about what happened before you filed for bankruptcy, mortgage lenders are more interested in your recovery or what you have done since your filing. Rocovery will not happen over night, but here are some tips and things to keep in mind when you inquire about a mortgage with tarnished past credit:

Give explanations. No mortgage lender is going to ignore the fact that you have filed bankruptcy and he or she will likely want to know the cause of the filing. Your lender will be particularly interested in whether the same situation could happen again. Your chances of being qualified are much better if your bankruptcy was caused by a single event such as a loss of employment or a death in the family, than if it was the result of just spending too much.

If the bankruptcy resulted from a single event, it is important to show your lender paperwork describing the incident, such as the layoff notice or death certificate. The lender will also want to see bankruptcy court documents that document when the bankruptcy was filed.

Demonstrate good money habits now. Many people who file bankruptcy swear off credit altogether; however, it is important to re-establish your credit rating. Get a secured credit card or take on some sort of loan for furniture, a car or a major appliance to demonstrate that you are able to make timely payments. Make sure you are making other payments (utility bills, cell phone, etc.) on time as well. You will not turn things around in only a year but your credit score will improve over time.

Dispute any credit report errors. There is no need to add to your troubled credit history with errors on your credit report. Get a copy of your credit report from each of the three major credit reporting agencies (CRA): Equifax, http://www.equifax.com; Experian, http://www.experian.com; and TransUnion, http://www.tuc.com. If you encounter any errors, inform the CRA in writing what information you believe to be inaccurate and request deletion or correction.

Shop around for a lender. There are still a few alternative lending sources also known as B and C lenders or subprime lenders that provide mortgage financing for someone with a damaged credit history who is considered a high risk borrower. These types of lenders reduce their risk in making loans by charging borrowers a higher interest rate and sometimes additional fees. In fact, many lenders have comeback loan programs for people recovering from bankruptcy that often include credit reports, credit counseling referrals and consumer education. You may also want to seek advice from a reputable mortgage broker at Mortgage Marketing Associates who can review your situation and let you know what options exist.

Save your money. Lenders may be more willing to loan you money if you have saved up a considerable amount of money for a down payment, so try to save as much as you can.

Live within your means. Even subprime lenders will not risk loaning you money for an opulent oceanfront mansion. Think small when the time comes to look for a home, because smaller homes often mean smaller mortgages.