There are thousands of people who are trying to find a mortgage after filing for bankruptcy. They are either looking to buy a home or refinance their existing mortgage. Unfortunately, finding a home loan after a bankruptcy is not the easiest thing to do. Below, we will take you through some options and then connect you with some of the best lenders who can help people who have filed for bankruptcy.
How Long Must You Wait After Filing for Bankruptcy?
Every type of loan has different waiting period requirements. Here are some of the basics:
- VA Loans after bankruptcy– 2 year waiting period
- FHA Loans after bankruptcy – 2 year waiting period
- USDA Loans after bankruptcy – 3 year waiting period
- Conforming mortgages after bankruptcy – 4 year waiting period after chapter 7 and 2 years after chapter 13
Depending upon your scenario, we can find a mortgage for you just ONE DAY after your bankruptcy has been discharged.
How to Prepare For a Mortgage After Bankruptcy
Lenders are going to look at your entire situation to evaluate whether they feel comfortable moving forward with your mortgage. Extenuating circumstances will play a part. They will want to know why you filed for bankruptcy and also what you have been doing since then. Here are some of the things you can do to improve your chances.
Improve Your Credit Score – Immediately after filing for bankruptcy, your credit score will drop a minimum of 100 points. Now, you need to begin building it back up. The better your credit score, the more likely you will be able to get a loan. Read about how to improve your credit score.
Down Payment Amount – When you are ready to apply for a mortgage after your bankruptcy, one of the key factors will be how much you can put down for a purchase or how much equity you have in the home for a refinance. The more money you put down, the easier it will be to get a loan. The down payment amount may also impact your interest rate too.
Make On Time Mortgage Payments – If you have a mortgage when you file for bankruptcy, it is extremely important that you do not miss, or are not late on any mortgage payments. In fact, this may be a deal breaker. Do everything you can during this difficult time to make on time mortgage payments.
Which Are The Best Lenders For a Mortgage After a Bankruptcy?
There is no way to keep this web page updated with the right answer. First, your personal situation and scenario will determing which lender is the best for you. Where the home is located will also matter because not all lenders are licensed in every state. The good news is that we are keeping up with all of this throughout our extensive lender network. All you need to do is CLICK TO CONNECT WITH A LENDER, answer a few simple questions and we will connect you with what we think will be the best fit.
Frequently Asked Questions – Finding a Mortgage After Bankruptcy
Will I be able to buy a home after a bankruptcy? Yes, there is a good chance that you can. Much will depend upon your personal scenario and some of the details outlined above.
What credit score is required? This may vary by lender but in all cases the higher the better. You should target a minimum of 620.
How much of a down payment will I need? Most likely a minimum of 20% . Possibly more and more is better.
Do I have to wait a few years before finding a loan? No, we work with lenders who will finance your loan just one day out of bankruptcy.