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can I get an equity line of credit if my bankruptcy has only been 20 months

by jeremy rodriguez from Clarksville, Tennessee. Oct 2nd 2015 Reply


Reuben Cano (eloanadvisor)
#416 ranked lender in California - 9 contributions

Highly unlikely. 2nd mortgages (equity lines or closed end 2nds) are considered by lenders to be very high risk loans. Credit usually has to be impeccable now days to get a line of credit. Even mortgages secured by 1st position liens (standard home loans) require at least 3 years before they will lend you money.Exception to this rule is a hard money lender- they may only go up to about 60% of the value of your home to assure that in case of default they can still get their money back.

Oct 3rd 2015
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,041 contributions

Probably not.. any type of 2nd position loan is going to be difficult to get if your less than 4 years out of a BK.. and for most lenders, it will be 7 years.. This all being said, if you have a relationship with a local community bank or credit union, then it's possible they might do something for you... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Oct 3rd 2015
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Phil Dumouchel (PhilDu)
#1 ranked lender in South Carolina - 2,228 contributions

Have to agree with the others, it is unlikely from any traditional source. If you have significantl equity one of the alternative lenders might be willing to help but expect to pay very high fees and/or rate. If the BK was a chapter 13 and you have made at least 12 payments it may be possible to get a FHA mortgage as long as everything else is acceptable.

Oct 4th 2015
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Mark Hemingway (SFSLend)
#1 ranked lender in Colorado - 596 contributions

Very difficult to get an equity line of credit with less than 2 years on your BK. For one thing their minimum credit score may be higher than what you have now. Plus their guidelines will require 3to 4 years after a BK. Since these lenders are in the second position they carry more of the risk in the event of default.

Oct 5th 2015
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