Can I Qualify For Home Loan With Bad Credit After Bankruptcy

Solutions To Bad Credit After Bankruptcy

Home Buyers can qualify for mortgage loans after a bankruptcy, whether it was a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy. There are strict minimum waiting periods after Bankruptcy to qualify for mortgage loans. FHA requires a minimum of a 2 year waiting period after Chapter 7 Bankruptcy discharge date and Fannie Mae and Freddie Mac require a minimum 4 year waiting period after a Chapter 7 Bankruptcy discharge date to qualify for Conventional Loans. There is no waiting period after a Chapter 13 Bankruptcy discharged date to qualify for FHA Loans, however, any FHA Loans After A Chapter 13 Bankruptcy discharge that has not been seasoned for at least two years needs to be done via manual underwriting . If the mortgage loan borrower has a Chapter 13 Bankruptcy dismissal, then the mandatory waiting period is two years to qualify for a FHA Loan after the Chapter 13 Bankruptcy has been dismissed.

There is a 2 year waiting period to qualify for a Conventional Loan after a Chapter 13 Bankruptcy discharge date and a four year mandatory waiting period to qualify for a conventional loan after a Chapter 13 Bankruptcy dismissal date. Qualifying for mortgage loans with bad credit after bankruptcy can be challenging. Most mortgage lenders do not allow bad credit after bankruptcy. There are a few mortgage lenders like myself that will consider mortgage loan borrowers with bad credit after bankruptcy.

Qualifying For Mortgage After Bankruptcy

Meeting the mandatory waiting period after bankruptcy does not guarantee you a mortgage loan approval after bankruptcy. Mortgage borrowers can meet the waiting period after bankruptcy requirements and the minimum credit scores to qualify for a mortgage loan as well as meet the debt to income ratio requirements, however, the mortgage loan borrower’s overall credit history will be carefully analyzed and reviews. Most mortgage lenders will not consider any mortgage loan borrowers who had late payments after bankruptcy even though they may have high credit scores and great documented income. However, I can approve mortgage loan borrowers with bad credit after bankruptcy on a case by case scenario. If the mortgage loan borrower has bad credit after bankruptcy due to financial irresponsibility, then no mortgage lender will approve the borrower. However, if the borrower had bad credit after bankruptcy due to honest mistakes, then the mortgage underwriter will consider that and take that into consideration.

Examples Of Bad Credit After Bankruptcy

If mortgage loan applicants has just a few late payments after bankruptcy, they are not out of qualifying for a mortgage loan. Each late payment will be evaluated on a case by case basis.

Regarding lates after Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Short Sale, Deed In Lieu Of Foreclosure, or Foreclosure, the mortgage loa application is evaluated and analyzed on a case by case basis.  Depends on type and amount of lates, reason for lates and the whole mortgage loan file profile.  So it will be up to the mortgage loan underwriter to determine if the borrower is credit worthy.  Overdrafts will be questioned, again case by case.  If borrower shows constant over drafts that could be an issue depending on reasons.  Again case by case and underwriter determination.

If you have had bad credit after bankruptcy and are told that you do not qualify by banks and mortgage lenders, please contact me at 262-716-8151 or email me at gcho@gustancho.com. I have no mortgage lender overlays on FHA Loans and Conventional Loans and we are an extremely aggressive mortgage lender where we want to close loans.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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