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What's the best mortgage to get after a bankruptcy?

What mortgage programs are easy to qualify with lower credit scores? I'm recovering but still have a ways to go to restore it entirely by RFreeman from Westminster, Colorado. Jan 15th 2013 Reply


Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

Generally, FHA loans are easier to obtain following a bankruptcy. You should start working with a local Mortgage Professional now to see exactly what you need to do to become "Loan Ready". Contact me directly and I'll hook you up with one of our local Originators that serves Colorado. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Jan 15th 2013
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

As others have stated, FHA requires a 2 year waiting period from the discharge date, however that's if there was no home involved in the BK.. if there was a mortgage involved, then you're waiting period is 3 years from the date the property was transferred out of your name.. Not the date the BK discharged, and not the date you moved out of the home, but when the title is no longer in your name.. We've seen folks 2 years out of a BK and the home has yet to foreclose.. For these folks, the mandatory 3 year waiting period has not even started. Most lenders require a 640 or above credit score, and you have to re establish with good credit.. And if you have a 20 day late payment on any obligation that shows on the credit report after the BK, it will be extremely difficult to get a loan.. 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. 480-287-5714 WilliamAcres.com

Jan 16th 2013
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Karen Close (KarenC)
#62 ranked lender in Colorado - 2 contributions

If the bankruptcy was discharged 2 years ago then you can do an FHA loan. You need a 640 credit or you will pay a ridiculous penalty. Not worth it. We can do a credit repair audit to get your score up. You just need to follow the instructions to the letter because it is computer generated so no deviation.If you want further information you may call me at Envoy Mortgage 303-483-7518, Karen E. Close, Licensed loan originator.

Jan 15th 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

FHA will allow you to get a mortgage 2 years from your discharge date. It is most important to re establish new credit, and above all else do not have any lates report to your credit at all. As long as you rebuild your credit and have no lates, in two years time your credit scores should be good. I recommend you have at least three open and active trade lines on your credit. If you open credit cards keep the balances at no more than 30% of your limit.

Jan 15th 2013
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St.marks Sanders (St.Marks)
#65 ranked lender in Colorado - 10 contributions

FHA would be the best program after a bankruptcy. They allow for lower credit scores with an exceptional rate. Chapter 7 requires a two year waiting period after the discharge date while Chapter 13 allows it after one year. The most common problem is most people don't work on rebuilding their credit after the bankruptcy. St.Marks Sanders 303-719-7778 NMLS 304058

Jan 15th 2013
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,112 contributions

If you are referring to a BK-7 the typical time is 2 years from the discharge date on FHA. However if the BK was due to extenuating circumstances you may be able to buy after a year if you have credit scores over 640, re-established credit and have no late payments since you filed or longer. FHA considers a serious illness or death of a wage earner to be an extenuating circumstance. FHA does not consider divorce, job transfer and inability to sell a home, or job loss as an extenuating circumstance. Also, if you have a home included in your BK you will have to wait for 3 years from the trust deed date. It is a good idea to have someone review your credit and get you on a plan of action so you can be loan ready when the time is right. Sean Young, NOVA Home Loans, 720-279-5931, NMLS: 191647

Jan 15th 2013
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Matt Pollina (matt@smartmtgs.net)
#59 ranked lender in Illinois - 40 contributions

As stated here many times, FHA loans are typically the easiest to obtain after a BK. They allow for lower credit scores, higher loan to value and shorter 'cooling off' period. Be sure to not be more than 30 days late on any consumer debt following the BK!

Jan 15th 2013
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Steven Ceceri (CreativeFinancingOptionsGroup)
#36 ranked lender in Massachusetts - 723 contributions

What is your current credit score and how do your tradelines look on your credit? If you would like to review some Free Credit Websites, please let me know and I will send you the links. You can directly message me through this site to let me know if you would like those links. Thank you!

Jan 15th 2013
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Lorne Harvey (lorneharvey)
#80 ranked lender in Washington - 431 contributions

The VA loan also has a 2 year waiting period and can be done sooner as mentioned by Sean Young about his explanation regarding circumstances beyond a borrowers control.

Jan 15th 2013
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Edgar Aranda (earanda)
#752 ranked lender in California - 93 contributions

FHA is the best choice after a bankruptcy.

Jan 15th 2013
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Joe Shamie (Joe Shamie)
#5 ranked lender in New Jersey - 1,412 contributions

FHA would be easier to qualify for.

Jan 16th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

As all have said FHA but talk to a local lender to work on your credit repair now.

Jan 16th 2013
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