How long can I get a mortgage after declaring bankruptcy?

How Long After Bankruptcy Can I Get A Mortgage? The financial hardship of bankruptcy can have a long-lasting impact on a person’s creditworthiness. It’s not surprising that many people are interested in learning how long it takes to become eligible for a mortgage after declaring bankruptcy. Although bankruptcy can affect your ability to get a mortgage, owning a home is not completely out of the question. Let’s look at how long it takes to get a mortgage after filing for bankruptcy.

How Long After Bankruptcy Can I Get A Mortgage?

Chapter 7 bankruptcy:

In Chapter 7 bankruptcy, assets are sold to pay off obligations. It typically stays on your credit record for ten years following the filing date. It does not, however, imply that you must wait ten years to obtain a mortgage. In fact, two years after your Chapter 7 bankruptcy discharge, you might be able to get approved for a mortgage.

You must fulfill specific standards in order to be qualified for a mortgage within this time period. Lenders have different requirements, but generally speaking, you must have shown sound financial management since the bankruptcy. This entails keeping a consistent source of income, making on-time payments on your debts, and repairing your credit by opening up new credit lines and using them properly.

Bankruptcy under Chapter 13:

Chapter 13 bankruptcy entails a repayment schedule that lasts three to five years. Your bankruptcy is still listed on your credit report seven years after you filed. You might be eligible to get a mortgage after filing for Chapter 13 bankruptcy as long as you’re still in the repayment plan.

You will require the bankruptcy court’s approval in order to secure a mortgage while filing for Chapter 13 bankruptcy. In order to complete this process, you must give the court a thorough justification for your need for the mortgage as well as proof that you can afford the additional mortgage payments on top of your current bankruptcy repayment plan. Finding a lender ready to cooperate with debtors who are currently involved in a Chapter 13 bankruptcy is another requirement.

There is normally a two-year waiting time after your Chapter 13 bankruptcy has been dismissed. Similar to the requirements for a Chapter 7 bankruptcy, you’ll need to demonstrate responsible financial behavior during this time as well as restore your credit.

Rebuilding Your Credit:

After the Discharge, it’s critical to concentrate on rebuilding your credit regardless of the type of bankruptcy you filed. This includes keeping up with bill payments, paying down debt, and building a strong credit history. To gradually raise your credit score, getting a secured credit card may be useful. Use it to make modest purchases and pay the card off in full each month.

Conclusion:

although bankruptcy affects your ability to get a mortgage, it doesn’t necessarily imply you have to wait a long time. You could be eligible to obtain a mortgage as soon as two years following the clearance of your bankruptcy, depending on the type of bankruptcy you underwent and your financial situation. During this waiting period, you must work to rebuild your credit and exhibit prudent money management. Consulting with a mortgage expert can help you make the most informed decisions and improve your chances of getting a mortgage after bankruptcy.

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