Posted on: 26th Aug, 2009 12:38 pm
Hi,
My husband and I had a Chapter 7 for unsecured debt due to extended job loss/failed business due to the economy. This was discharged 6/08. We did not include our home and did a Short Sale 5/09. Credit states "Settled in Full" and we have decent credit since our BK. We have relocated and have very good jobs & income,no new debt. Have been with same employer(s) going on 1 year. Credit scores high 500's.
When would we be an acceptable credit risk to a mortgage company?
Thank you for feedback in advance!
My husband and I had a Chapter 7 for unsecured debt due to extended job loss/failed business due to the economy. This was discharged 6/08. We did not include our home and did a Short Sale 5/09. Credit states "Settled in Full" and we have decent credit since our BK. We have relocated and have very good jobs & income,no new debt. Have been with same employer(s) going on 1 year. Credit scores high 500's.
When would we be an acceptable credit risk to a mortgage company?
Thank you for feedback in advance!
hi cpgarrett,
you need to wait for at least 2 years after discharge from chapter 7 bankruptcy. this the minimum time required to qualify for an fha loan after bankruptcy. for conventional loan, you need to wait for 3-4 years. you also need to improve your credit since the bankruptcy discharge. you will have to wait at least till 6/10 to qualify for a new mortgage and you are also required to improve your credit score to more than 620. a high 500 credit score is not enough to get you a loan in this market.
you need to wait for at least 2 years after discharge from chapter 7 bankruptcy. this the minimum time required to qualify for an fha loan after bankruptcy. for conventional loan, you need to wait for 3-4 years. you also need to improve your credit since the bankruptcy discharge. you will have to wait at least till 6/10 to qualify for a new mortgage and you are also required to improve your credit score to more than 620. a high 500 credit score is not enough to get you a loan in this market.
Thanks for the prompt reply. The 6/10 time frame, is this with the Short Sale as well? If so, that at least gives us a time frame to shoot for. Thanks so much!
jenkin is right.
below 620, these days it is impossible to get any mortgage
below 620, these days it is impossible to get any mortgage