Reestablishing Credit After Bankruptcy To Qualify For A Mortgage

This Article Is About Reestablishing Credit After Bankruptcy To Qualify For A Mortgage

The easiest and fastest way of Reestablishing Credit After Bankruptcy to prepare for a mortgage is by getting three to five secured credit cards with at least a $500 credit limit on each card. When should you get the secured credit cards?  The answer is as soon as humanly possible from the discharge of the bankruptcy. Each secured credit card should boost consumer credit scores by 20 to 50 points. As the secured credit card ages, the credit profile of the consumer will get stronger. After six to twelve months of timely payments, the secured credit card company will increase the credit limit without asking for an additional deposit from the cardholder.

How To Get 700 FICO In Less Than One Year After Bankruptcy

Many of our clients at Gustan Cho Associates have credit scores over 700 FICO in less than a year after their bankruptcy discharged date by taking our advice. The team at GCA Mortgage Group will guide our clients the right way in Reestablishing Credit After Bankruptcy in order to qualify for a home mortgage. There are mandatory waiting period requirements after bankruptcy to qualify for a mortgage after bankruptcy. The waiting period requirements depend on the particular loan program which we will cover in this blog. Gustan Cho Associates offers non-QM loans one day out of bankruptcy. We will also cover the basic guidelines of alternative finance home mortgages for homebuyers who want to purchase a home and qualify for a mortgage prior to the mandatory waiting period.

The Power Of Secured Credit Cards After Bankruptcy

Secured credit cards are like unsecured credit cards. The only difference between secured versus unsecured cards is that secured credit cards require a deposit. For example, a consumer deposits $500 to a secured credit card company. The credit card provider will issue a secured credit card with a credit for $500. The card provider will report all payment history to the three credit bureaus. Late payments will be reported as late payments on the credit bureaus. Secured credit cards are the most powerful tool in Reestablishing Credit After Bankruptcy. Each secured credit card should boost a consumer credit score by at least 20 to 50 points

As the secured card ages, the credit profile of the cardholder will also strengthen. Secured credit card providers will increase credit limits for cardholders who are timely on their payments after six to twelve months. After one year of having aged secured credit cards, cardholders can then apply for any type of credit and get approved. They can get unsecured credit cards with no issues.

The First Step In Reestablishing Credit After Bankruptcy To Qualify For A Mortgage

In this blog, we will help our viewers on getting credit scores over 700 FICO in one year or less after a bankruptcy discharge. We do not charge anything. We help our viewers to maximize their credit scores and create a strong credit profile after bankruptcy so they can qualify for a mortgage at the lowest rate possible. A bankruptcy does not affect mortgage rates. However, credit scores do. The higher the borrower’s credit scores, the lower the mortgage rates. As mentioned earlier, three to five secured credit cards with at least a $500 credit limit are key.

Besides three to five secured credit cards, you should get an installment loan. An auto loan is an installment loan. You can get an auto loan after bankruptcy discharge all day long. However, DO NOT get an auto loan if you are planning on getting a mortgage soon. The average auto payment is $400 per month. A $400 per month monthly payment is equivalent to an $80,000 mortgage loan balance.

Types Of Credit Tradelines To Have After Bankruptcy

Credit Tradelines To Have After Bankruptcy

There are other ways to get an installment credit tradeline to report on your credit report. Apply for a credit rebuilder program with Self.inc. How this works is you make a $25 to $50 monthly deposit to an FDIC bank. The bank reports the monthly payment on all three credit bureaus for 12 months. After 12 months, you have saved this money in a CD FDIC Bank Account. This money is then returned to you. This will create an installment loan credit tradeline on your credit report which will strengthen your credit profile and increase your credit scores. Another tip Gustan Cho Associates has is to open up a Jewelry Unsecured Card. What this company does is get you a $5,000 unsecured jewelry card that reports to all three credit bureaus. This will skyrocket your credit scores. Please read the directions carefully. The team at GCA Mortgage Group highly recommends this jewelry card.

Late Payments After Bankruptcy

There is no reason why anyone cannot have a credit score of over 700 FICO after a bankruptcy discharge. If you follow our directions at Gustan Cho Associates, you can achieve a credit score of over 700 just under a year after the bankruptcy discharge date. We will help you prepare for a home mortgage after bankruptcy. Just waiting out the mandatory waiting period after bankruptcy does not automatically qualify you for a home mortgage. Lenders want to see re-established credit after bankruptcy. You cannot have late payments after bankruptcy.

Borrowers with late payments after bankruptcy are considered second offenders by mortgage lenders. It will be difficult to get an approve/eligible per automated underwriting system (AUS) with late payments after bankruptcy. One or two late payments after late payments after bankruptcy is not always a deal killer. However, it will make getting mortgage approval very difficult. The team at Gustan Cho Associates are experts in helping borrowers with late payments after bankruptcy. You need several new credit tradelines with perfect payment history after the late payment after bankruptcy reports on the credit bureaus. The older the late payment after bankruptcy, the better your chances are in getting a mortgage approval.

Reestablishing Credit After Bankruptcy But Getting Denied For Secured Credit Cards

The easiest and fastest way of reestablishing credit after bankruptcy is by getting three secured credit cards and one installment credit-builder account that all report to the three credit reporting agencies. The time to get these new lines of credit is as soon as humanly possible from the discharge date of the bankruptcy. There are instances where a secured credit card company will deny your secured credit card application. WHAT?  GETTING DENIES FOR A SECURED CREDIT CARD?  Yes!!!  Some credit card companies will deny a consumer right after bankruptcy. This holds true for consumers who recently got their bankruptcy discharged with no credit tradelines. When this happens, try other credit card companies. You will find a secured credit card company that will approve you. If you get denied secured credit cards by all of them, then get started with a credit rebuilder account. After the credit rebuilder account reports your reporting history for three to four months, you will have a solid credit tradeline reporting on your credit report and should have no problem getting a secured credit card approved.

When Can I Apply For Unsecured Credit Cards

Apply For Unsecured Credit Cards

Once you had your secured credit cards seasoned for one year, you will be ready to get approved for unsecured credit cards. Do not close out your secured credit cards. See if you can get two unsecured credit cards. Many of your secured credit card companies will increase your credit limit without asking for an additional deposit. Therefore, many of your secured credit cards will turn into unsecured credit cards. Some secured credit card companies may return your initial deposit when you first open your secured credit card. As time ages with your open credit tradelines, your credit scores will keep increasing and your credit profile will get stronger.

How To Prepare For A Home Mortgage After Bankruptcy

There are mandatory waiting period requirements after bankruptcy to qualify for government and conventional loans. However, just waiting out the minimum mandatory waiting period does not automatically qualify you for a home mortgage. Lenders expect borrowers to have reestablished their credit and not have any late payments after bankruptcy. During the waiting period, homebuyers should diligently work on reestablishing their credit and boosting their credit scores. There is no reason why anyone cannot have credit scores of 700 FICO or higher one year after bankruptcy discharge if they follow our directions.

Waiting Period After Bankruptcy On Government And Conventional Loans

Here are the mandatory waiting period requirements after bankruptcy on government and conventional loans:

  • FHA loans have a two-year waiting period after the Chapter 7 Bankruptcy discharged date
  • There is a three-year waiting period after foreclosure, deed in lieu of foreclosure, short sale to qualify for FHA loans
  • There is a two-year waiting period after Chapter 7 Bankruptcy, foreclosure, deed in lieu of foreclosure, short sale to qualify for VA loans
  • There is a three-year waiting period after Chapter 7 Bankruptcy, foreclosure, deed in lieu of foreclosure, short sale to qualify for a USDA loan
  • There is a four-year waiting period after Chapter 7 Bankruptcy, deed in lieu of foreclosure, short sale to qualify for a conventional loan
  • There is a seven-year waiting period after a foreclosure to qualify for conventional loans
  • There is a two-year waitihttps://gustancho.com/2020-va-loan-updatesng period after Chapter 13 Bankruptcy discharged date to qualify for a conventional loan
  • There is a four-year waiting period after the Chapter 13 Bankruptcy dismissal date to qualify for conventional loans
  • Borrowers in a Chapter 13 Repayment plan can qualify for an FHA and VA loan during the Chapter 13 Bankruptcy repayment without the bankruptcy being discharged and Trustee Approval on a manual underwrite
  • There is no waiting period after the Chapter 13 Bankruptcy discharged date to qualify for an FHA or VA loan
  • If Chapter 13 Bankruptcy discharged date has not been seasoned for two years, the file needs to be manually underwritten

Gustan Cho Associates is a five-star national mortgage company licensed in multiple states with no lender overlays on government and conventional loans. To qualify for a home mortgage with a lender with no lender overlays, please contact us at 262-716-8151 or text us for a faster response. Or email us at [email protected] The team at GCA Mortgage Group is available 7 days a week, evenings, weekends, and holidays.

Mortgage Options After Bankruptcy

Which means reinstating a bankruptcy loan to qualify for a mortgage

There is a mandatory waiting period after bankruptcy and foreclosure in order to qualify for Home Loans:

  • The waiting period for someone who has a previous bankruptcy is two years from the discharge date of the bankruptcy and not the filing date to qualify for FHA and VA Home Loans
  • However, just passing the waiting period after bankruptcy does not guarantee someone a mortgage loan approval
  • The two-year minimum waiting period after Chapter 7 bankruptcy discharge date is just one of the requirements to be eligible for home loans
  • Mortgage Lenders do not want the mortgage applicant to have any late payments or derogatory credit items after a bankruptcy and have re-established credit after bankruptcy
  • Re-establishing credit after bankruptcy?

In this article, we will discuss and cover Re-Establishing Credit After Bankruptcy To Qualify For Mortgage.

Importance Of Re-Establishing Credit After Bankruptcy

There are so many folks who want nothing to do with credit after bankruptcy discharge.

  • Not re-establishing credit after bankruptcy will hurt people who are planning in buying a home at a later date
  • Consumers should re-establish their credit after bankruptcy discharge as soon as possible
  • Do not do it to use credit but rather to establish credit

The easiest and fastest way of re-establishing credit after bankruptcy and/or housing event is by getting three to five secured credit cards.

Damage To Credit After Bankruptcy

A bankruptcy will drop someone’s credit scores by at least 150 points or more

  • The bad news is that credit is shot but the good news is that the drop in scores is temporary
  • Chances are that no creditor will give a person who just filed bankruptcy and/or had a bankruptcy discharge credit so how can someone re-establish credit after bankruptcy?
  • The best way to re-establish credit after bankruptcy is by getting secured credit cards
  • People who just got a bankruptcy discharge just assume that they will no longer get credit and give up on re-establishing credit
  • However, this is not the case
  • Consumers can easily get credit scores of over 700 one year after a bankruptcy discharge as long as they play their cards right
  • As soon as consumers get their Chapter 7 bankruptcy discharged, get three to five secured credit cards

Make sure to get a minimum credit limit of $500 for maximum optimization.

Credit After Bankruptcy

What does bankruptcy mean?

Chances are that credit scores will be in the upper 400’s after Chapter 7 bankruptcy discharge is recorded.

  • No worries
  • That low credit score is just temporary
  • Credit scores will most likely go to the mid 500’s even if consumers do nothing about re-establishing credit after bankruptcy
  • However, consumers can get three to five secured credit cards, each secured credit card will boost credit scores by at least 20 or more points
  • It gets even better
  • As credit payment on those secured credit cards ages, credit scores will even get higher
  • Keep using secured credit cards regularly
  • Pay it down so credit balance is not higher than 10% of the credit limit

There is no reason why credit scores would not be in the upper 600’s or lower 700’s one year after Chapter 7 bankruptcy discharge date.

Road To Great Credit With Secured Credit Cards

Secured credit cards are the best tools in re-establishing credit after bankruptcy.

  • Secured credit cards are so important in re-establishing credit after bankruptcy
  • Secured credit card companies will most likely increase credit limit after one year if credit cardholders have a good payment history without requiring to put any additional deposits
  • The way a secured credit card works is the secured credit card company will require credit cardholders to put a deposit with them for a certain amount they choose
  • For example, consumers can get a secured credit card by placing a $500 deposit with the secured credit card institution
  • In return, the secured credit card company will issue a secured credit card with a $500 credit limit
  • There will be a minimum amount due each month

Interest will be charged on balance even though a $500 deposit with the secured credit card institution.

Credit Reporting Agencies

Secured credit card companies will report credit card limit, balance, minimum amount due, and payment history.

  • Cardholders who are late with minimum secured card monthly payments, it will be reported late on all three credit bureaus
  • Credit scores will drop and late payment history will be reported on the credit report
  • A secured credit card is like an unsecured credit card
  • Late payment on a secured credit card is no different than a late payment on a traditional unsecured credit card
  • Card Holders religiously use secured card and make secured card payments timely every month, secured credit card company will most likely give a credit limit increase without requiring an additional deposit
  • After one year seasoning of timely payment history on secured credit cards, cardholders will be eligible to apply for unsecured credit cards
  • They will also be eligible for other unsecured credit such as gas cards, department store cards, furniture store cards, and other credit
  • Remember to always make the minimum credit card payment on time and never be late
  • One late payment on any credit card or creditor can drop credit scores 50 or more points

Late payment history will be on the credit report for a period of 7 years.

Lender With No Overlays On Home Mortgages

Gustan Cho Associates Mortgage Group has no mortgage overlays on government and conventional loans. Home Buyers with less than perfect credit needing to qualify for a mortgage with a direct lender with no overlays on FHA, VA, USDA, Conventional Loans, please contact us at GCA Mortgage Group at 262-716-8151 or email us at [email protected] We are available 7 days a week, evenings, weekends, and holidays.

Waiting Period After Bankruptcy

Which means reinstating a bankruptcy loan to qualify for a mortgage

There is a mandatory waiting period after bankruptcy and foreclosure in order to qualify for Home Loans:

  • The waiting period for someone who has a previous bankruptcy is two years from the discharge date of the bankruptcy and not the filing date to qualify for FHA and VA Home Loans
  • However, just passing the waiting period after bankruptcy does not guarantee someone a mortgage loan approval
  • The two-year minimum waiting period after Chapter 7 bankruptcy discharge date is just one of the requirements to be eligible for home loans
  • Mortgage Lenders do not want the mortgage applicant to have any late payments or derogatory credit items after a bankruptcy and have re-established credit after bankruptcy
  • Re-establishing credit after bankruptcy?

In this article, we will discuss and cover Re-Establishing Credit After Bankruptcy To Qualify For Mortgage.

Importance Of Re-Establishing Credit After Bankruptcy

There are so many folks who want nothing to do with credit after bankruptcy discharge.

  • Not re-establishing credit after bankruptcy will hurt people who are planning in buying a home at a later date
  • Consumers should re-establish their credit after bankruptcy discharge as soon as possible
  • Do not do it to use credit but rather to establish credit

The easiest and fastest way of re-establishing credit after bankruptcy and/or housing event is by getting three to five secured credit cards.

Damage To Credit After Bankruptcy

A bankruptcy will drop someone’s credit scores by at least 150 points or more

  • The bad news is that credit is shot but the good news is that the drop in scores is temporary
  • Chances are that no creditor will give a person who just filed bankruptcy and/or had a bankruptcy discharge credit so how can someone re-establish credit after bankruptcy?
  • The best way to re-establish credit after bankruptcy is by getting secured credit cards
  • People who just got a bankruptcy discharge just assume that they will no longer get credit and give up on re-establishing credit
  • However, this is not the case
  • Consumers can easily get credit scores of over 700 one year after a bankruptcy discharge as long as they play their cards right
  • As soon as consumers get their Chapter 7 bankruptcy discharged, get three to five secured credit cards

Make sure to get a minimum credit limit of $500 for maximum optimization.

Credit After Bankruptcy

What does bankruptcy mean?

Chances are that credit scores will be in the upper 400’s after Chapter 7 bankruptcy discharge is recorded.

  • No worries
  • That low credit score is just temporary
  • Credit scores will most likely go to the mid 500’s even if consumers do nothing about re-establishing credit after bankruptcy
  • However, consumers can get three to five secured credit cards, each secured credit card will boost credit scores by at least 20 or more points
  • It gets even better
  • As credit payment on those secured credit cards ages, credit scores will even get higher
  • Keep using secured credit cards regularly
  • Pay it down so credit balance is not higher than 10% of the credit limit

There is no reason why credit scores would not be in the upper 600’s or lower 700’s one year after Chapter 7 bankruptcy discharge date.

Road To Great Credit With Secured Credit Cards

Secured credit cards are the best tools in re-establishing credit after bankruptcy.

  • Secured credit cards are so important in re-establishing credit after bankruptcy
  • Secured credit card companies will most likely increase credit limit after one year if credit cardholders have a good payment history without requiring to put any additional deposits
  • The way a secured credit card works is the secured credit card company will require credit cardholders to put a deposit with them for a certain amount they choose
  • For example, consumers can get a secured credit card by placing a $500 deposit with the secured credit card institution
  • In return, the secured credit card company will issue a secured credit card with a $500 credit limit
  • There will be a minimum amount due each month

Interest will be charged on balance even though a $500 deposit with the secured credit card institution.

Credit Reporting Agencies

Secured credit card companies will report credit card limit, balance, minimum amount due, and payment history.

  • Cardholders who are late with minimum secured card monthly payments, it will be reported late on all three credit bureaus
  • Credit scores will drop and late payment history will be reported on the credit report
  • A secured credit card is like an unsecured credit card
  • Late payment on a secured credit card is no different than a late payment on a traditional unsecured credit card
  • Card Holders religiously use secured card and make secured card payments timely every month, secured credit card company will most likely give a credit limit increase without requiring an additional deposit
  • After one year seasoning of timely payment history on secured credit cards, cardholders will be eligible to apply for unsecured credit cards
  • They will also be eligible for other unsecured credit such as gas cards, department store cards, furniture store cards, and other credit
  • Remember to always make the minimum credit card payment on time and never be late
  • One late payment on any credit card or creditor can drop credit scores 50 or more points

Late payment history will be on the credit report for a period of 7 years.

Qualifying For Mortgage After Bankruptcy

How to qualify for a mortgage after bankruptcy

Qualifying for a residential mortgage loan after bankruptcy is not difficult.

  • First and foremost, there is a mandatory two year waiting period after Chapter 7 bankruptcy in order to qualify for an FHA and VA Home Loans
  • There is a 4-year waiting period to qualify for a conventional loan after Chapter 7 bankruptcy
  • Lenders want the mortgage borrower to have re-established credit after bankruptcy
  • No late payments after their bankruptcy discharge
  • One or two late payments are not deal killers
  • But habitual late payments, collections, charge offs, and disregard for credit will not fly after bankruptcy

As long as the mortgage applicant has re-established credit after bankruptcy and has passed the mandatory two-year waiting period, they should have no problem in qualifying for FHA and VA Home Loans.

Lender With No Overlays On Home Mortgages

Gustan Cho Associates Mortgage Group has no mortgage overlays on government and conventional loans. Home Buyers with less than perfect credit needing to qualify for a mortgage with a direct lender with no overlays on FHA, VA, USDA, Conventional Loans, please contact us at GCA Mortgage Group at 262-716-8151 or email us at [email protected] We are available 7 days a week, evenings, weekends, and holidays.

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