How long do I need to wait for a home loan after bankruptcy?

Will it be easy to qualify, since I got discharged off bankruptcy recently?

Hi,

You can be rest assured that bankruptcy is not going to a barrier for you in qualifying for a home loan. While evaluating your credit, bankruptcy is not going to be considered for the case.

Your credit score is much more important to qualify for a certain amount. With even a credit score as low as 500 you will be eligible to purchase with a down payment of 20%.
If it is between 550 and 579, then you become eligible to borrow 95% of the purchase value, and above 580 you can get 100% financing.

So, there is no need to worry. Bankruptcy is not going to be any problem for you in qualifying for a home loan. In case you want to clear any doubts on bankruptcy refer this topic on bankruptcy.

God bless you.

For MortgageFit,
Samantha

I want to chime in regarding bankruptcy and mortgages. It is true that people can acquire a mortgage 1 day out of bankruptcy, however there are guidlines with lenders for this with a minimum score of 600 for a 100% loan. If you have at least 20% to put down you should be able to get a loan with a 525 mid score. Or there are other programs that have no bankruptcy seasoning. The guidelines have changed as Blue stated and they have made it easier to qualify.
Look for a good lender/broker who will be willing to find these programs for you.

Cliff and Sandra

Hi all,

Those were wonderful suggestions. I think I got my answer.

Thanks,
Shelly

Any refferals for a home loan after bankrupcy

hi ramos!

you mentioned bankruptcy in your post. may i know what type of bankruptcy have you filed? if you had filed for a chapter 13 bankruptcy and got it discharged, then you will have to wait for at least 1year to get a fha loan whereas 2 years in case of conventional loans. if you had filed chapter 7 bankruptcy, then you will have to wait for 2 years after discharge to get a fha loan. to get conventional loans, you will have to wait for 4 years after discharge.

if you meet all these criteria, then you can start shopping for mortgage and i guess you will get one. this community also has some lenders whom you can consult and seek a no obligation free mortgage consultation.

thanks

Hi, I would love to buy a home using FHA. But I filed bankruptcy around 2003 and was dismissed. However, all my credit history since then is based on collateral loans and one credit car secured againts my savings. All of them, paid on time. Suggestions?

Hi Eduardo,

Getting a FHA loan would depend upon your present credit score and your income. The lender will look into your credit report for the negative items as well. If you do not have much negative items in your credit report and have a score of around 620, there are chances that you would be able to qualify for a loan.

Thanks

Hi,

Bankruptcy is not an issue if you have to go for taking a Loan as, this is what I dont find that much problematic for anyone as, all it requires is good credit score on which all the stuffs are dependent on it.

Thanks!

2003 was a long time ago, and Lenders won't be concerned with it if you've re-established your credit.

you should not face any problem due to Bankruptcy. however need to qualfy other parameters enforced by mortgage lender most imortant factors are credit score and debt to income ratio. credit score confirms your case for mortgage and debt to income ratio will affect mortgage amount.

I'VE JUST GOT DISCHARGED FROM CHAPTER 7. THE HOW LONG DO I HAVE TO WAIT TO APPLYFOR A USDA LOAN. I HAVE APPLIED FOR SOME
THINGS ONLY TO GET TURNED DOWN. HOW LONG DO IT TAKE TO GET
YOUR CREDIT SCORE UP.

hi guest,

you won't be able to get a mortgage immediately after a chapter 7 bankruptcy discharge. you'll have to wait for at least a year in order to qualify for an usda loan.

thanks

What is a USDA loan? I had a bankruptcy discharged in Dec 2009 and I really need a home loan, the rent prices in my area have skyrocketed! I have 20k to put down and on purchasing well below any affordability calculator recommends. Can any refer me to someone who might be able to help me?

[Email address deleted as per forum rules. Thanks.]