With the overwhelming number of bankruptcy filings out there many people wonder whether they will ever be able to get a mortgage loan to buy a new home or refinance their existing mortgage loan.
Many people ask me: “I’ve had a bankruptcy, can I get a mortgage loan again?”
Or, “How long do I have to wait before I can get a mortgage loan after my bankruptcy?”
First, you are able to get conventional mortgage financing after you’ve had a bankruptcy.
You just have to wait some time. It’s called “bankruptcy seasoning.”
Here’s what it means.
If you’ve had a Chapter 7 bankruptcy, then you have to wait at least 2 years from the bankruptcy discharge date to apply for a FHA mortgage loan.
For a conventional mortgage loan, you have to wait 4 years after the bankruptcy discharge date.
If you’ve had a Chapter 13 bankruptcy, then you have to wait 1 year from the bankruptcy discharge date to be eligible for a FHA mortgage loan.
For a conventional mortgage loan, you have to wait 2 years.
Just remember that you want to reestablish good credit after the bankruptcy discharge.
Also, after the bankruptcy discharge, in addition to reestablishing credit, concentrate on maintaining good credit by paying the bills on time and keep the credit card balances low or at zero.
If there are credit issues after the bankruptcy discharge date, your credit scores will suffer and you’ll be less likely to qualify for either a conventional or FHA mortgage loan.
So don’t despair, waiting 2 years after a Chapter 7 bankruptcy or 1 year after a Chapter 13 bankruptcy isn’t a lot of time.
You will be able to get mortgage financing again!