FHA Loan After Chapter 7 Bankruptcy

How To Qualify For FHA Loan After Chapter 7 Bankruptcy

Home Buyers can qualify for a FHA Loan After Chapter 7 Bankruptcy after a two year waiting period after the discharged date of their Chapter 7 Bankruptcy. A Chapter 7 Bankruptcy offers consumers a fresh start in their financial life. A Chapter 7 Bankruptcy will wipe out most debts a consumer has and will put a halt to all collection activities and procedures. A Chapter 7 Bankruptcy will discharge most debts like collection accounts, judgments, charge offs, secured debts, personal debts, and unsecured debts. The things that cannot be discharged with a Chapter 7 Bankruptcy are government debts such as tax liens, court ordered child support and/or alimony payments, and government backed student loan debts. Debt that incurred due to fraud cannot be discharged with a Chapter 7 Bankruptcy. The great news with a Chapter 7 Bankruptcy is that the consumer will be debt free and there is life after filing for a Chapter 7 Bankruptcy. Consumers can qualify for credit, auto loans, and mortgage loans after a Chapter 7 Bankruptcy. There are many instances where consumers can get credit scores of higher than 700 FICO one year after Chapter 7 Bankruptcy discharged date with proper re-establishing of their credit. Right after you file a Chapter 7 Bankruptcy, your credit scores will plummet more than 150 FICO points. However, that sudden drop is temporary and even if you do nothing to re-establish your credit and improve your credit scores, your credit scores will naturally rise over time. The drop after filing for Chapter 7 Bankruptcy is like having a major hangover. As time passes, your hangover will recover and so will your credit and credit scores. As time passes and your Chapter 7 Bankruptcy ages on your credit report, it will have less of an impact on your credit scores. Again, the great news is that home buyers can now qualify for a FHA Loan After Chapter 7 Bankruptcy just after two years of the Chapter 7 Bankruptcy Discharge Date.

FHA Loan After Chapter 7 Bankruptcy: Preparing For Home Loan

If you have recently filed bankruptcy or are planning on filing for Chapter 7 Bankruptcy, the minute your Chapter 7 Bankruptcy is discharged, you should start re-establishing your credit. The fastest and easiest way of re-establishing your credit is by getting three to five secured credit cards. The sooner you get several secured credit cards, the better off you will be because having aged credit tradelines is one of the most important factors that will provide you with a strong credit profile and mortgage lenders consider having aged multiple credit tradelines as compensating factors. Make sure that you are never late after your Chapter 7 Bankruptcy discharge date. Late payments after a bankruptcy and/or foreclosure is really frowned upon by mortgage lenders and many mortgage lenders will not approve anyone who had any late payments after a bankruptcy and/or foreclosure. Mortgage lenders expect timely payments on all credit obligations after a bankruptcy and/or foreclosure and one late payment can be a reason for a credit denial.

If you are renting an apartment or home, make sure that you make your rental payments with a check because verification of rent can only be valid by providing 12 months canceled checks which has been paid to the landlord. To qualify for a FHA Loan After Chapter 7 Bankruptcy, you need a minimum credit score of 580 FICO credit scores. However, if your credit scores are under 620 FICO credit scores, your mortgage lender may ask for verification of rent. If you are renting your apartment or home from a registered property management company, then a VOR, verification of rent, can be completed by the property manager of the property management company in lieu of 12 months canceled checks and/or 12 months bank statements. For those who pay their rental payments online, you can provide 12 months bank statements which reflect your monthly rental payments being transferred out of your bank account into the bank account of your landlord.

FHA Loan After Chapter 7 Bankruptcy: Mortgage Lender With No Overlays

If you are looking for a FHA Loan After Chapter 7 Bankruptcy and are looking for a FHA approved mortgage lender with no investor overlays, contact me at 262-716-8151 or email us at gcho@gustancho.com. We do not have any FHA Investor Overlays and just go off the automated findings of the Automated Underwriting System. We are available 7 days a week, evenings, weekends, and holidays.

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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