CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Can I Get a Mortgage After Bankruptcy? How Bankruptcy Attorney Help Leads to a Hopeful Future as a Homeowner

Can I Get A Mortgage After Bankruptcy.Securing a loan is one of the biggest challenges faced by someone after filing for bankruptcy. But this doesn’t mean taking out a loan is impossible, even if it’s a mortgage loan. Bankruptcy attorney help lets you move forward as quickly as possible after bankruptcy.

Of course, bankruptcy does affect your ability to get a mortgage, but it doesn’t completely eliminate it.

What should you know when you’re ready to apply for a mortgage after filing for bankruptcy?

Types of Bankruptcy

First, consider which type or chapter of bankruptcy you used. Most consumers file for either Chapter 7 or Chapter 13. Chapter 7 bankruptcy includes the liquidation of your assets. Chapter 13 is an adjustment of your debts.

In either case, filing for bankruptcy is going to affect your mortgage application, but exactly how a mortgage lender approaches your situation varies based on the chapter bankruptcy you used.

If you filed for Chapter 7, you can expect the bankruptcy to remain on your credit report for 10 years. Chapter 13 bankruptcies remain on your credit report for up to seven years, but that doesn’t include the three- to five-year repayment period. The clock on bankruptcy dropping off of your credit report begins ticking once the court discharges or dismissed your debts and your bankruptcy case is closed.

In most cases, you’ll want to wait until your bankruptcy has fallen off of your credit report. But not everyone can wait 7 to 10 years to borrow money to purchase a home. Although your chances of approval will be lower and your down payment requirements higher, most people wait at least 12 to 24 months after bankruptcy discharge to apply for a mortgage. But this also depends on the type of mortgage loan you’re dealing with. The wait for a government-backed loan is less than a conventional mortgage loan.

There are exceptions to the standard waiting periods. For example, if you have any of the following extenuating circumstances, you might be able to apply for a mortgage in a shorter period:

  • Divorce
  • Illness or death of a primary earner
  • Job loss
  • Natural disaster

Why Else Might You Want to Wait?

In addition to increasing your chances of approval, you might want to wait to apply for a mortgage after bankruptcy because of the long-term financial benefits patience offers.

Better credit means you’ll get a better interest rate on your mortgage. Just a single point higher and you could be looking at paying tens of thousands of dollars more for your home with a 30-year mortgage. Bankruptcy attorney help not only includes filing, it means getting help with credit improvement.

Instead of applying the moment you’re eligible to apply for a mortgage, waiting means you’ll improve your credit and hopefully, be able to save up for a larger down payment. Both strategies provide greater long-term benefits than rushing into a mortgage after bankruptcy.

What are Your Mortgage Options after Bankruptcy?

Your options for a mortgage loan after bankruptcy are the same as they are for someone who did not file for bankruptcy, but your chances of approval are not the same. Mortgage lending options include:

Conventional

Conventional mortgages are arguably the most difficult to get. You need a credit score of at least 620 and a five percent down payment (with some exceptions).

FHA

Approval for an FHA mortgage requires a credit score of 580 and a 3.5 to 10 percent down payment, depending on their score. Borrowers must also make all of their payments on time during the waiting period and not incur any additional debts between filing for bankruptcy and applying for their mortgage loan.

USDA

These loans are backed by the US Department of Agriculture and are available to borrowers purchasing a home in a rural area. There are income restrictions and loans must be for 30 years. Loans typically require a credit score of 640 with at least three years free of foreclosures, significant delinquencies, or bankruptcies. Some loans are approved without any down payment requirements.

VA

VA loans are available to veterans. They don’t have a set credit score requirement, but some lenders require a score of at least 620. VA loans are available with a 0 percent down payment.

To learn more about VA mortgage loans and other government-backed loans, check out this information from Experian.

How Can Bankruptcy Attorney Help Improve Your Chances of Getting Approved for a Mortgage?

There’s no quick-fix after bankruptcy to get you approved for a mortgage. However, there are several things you can do to boost your credit score and improve your chances of approval. These include:

  • Open a secured credit card account
  • Pay your bills on time
  • Don’t close credit accounts
  • Monitor your credit reports and request the removal of any errors
  • Beware of credit repair scams

Keep in mind, every situation is different. This is why bankruptcy attorney help is so important. What works for one person might not work for you when it comes to getting mortgage application approval. The best thing you can do is review your financial situation with a financial expert.

If you’d like to discuss filing for bankruptcy or you need bankruptcy attorney help, contact the Law Office of Robert M. Geller at 813-254-5696 to schedule a free consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Are Medical Issues Forcing You Into Bankruptcy?

Many Americans wind up in debt because of medical bills. One of the most common reasons for filing bankruptcy in...
Read More

Law Offices of Robert M. Geller, P.A. Congratulates Danielle Austin For Receiving the Patriot Award from the United States Department of Defense

Award Recognizes Support of Guard and Reserve Members Who Work for the Organization Tampa, Florida, June 29, 2021 – The...
Read More

Is Your 401k or Other Retirement Savings at Risk in Bankruptcy’s Liquidation of Assets?

If you’ve spent years saving for retirement, putting that money at risk when you file for bankruptcy is likely one...
Read More

Tips to Help You Protect Your Assets When You File for Bankruptcy

One of the most intimidating aspects of filing for bankruptcy is protecting your assets. Worrying about whether bankruptcy puts their...
Read More

How Does Bankruptcy Affect Vehicle Ownership? What Assets Can You Keep through the Bankruptcy Process and Does It Affect Your Car?

Many people struggling financially avoid filing for bankruptcy because of concerns about losing important assets like their vehicles. The good...
Read More

Is There a Legal Way to Hide Assets When You File for Bankruptcy?

Filing for bankruptcy can be an overwhelming experience. The relief you receive when you file helps you feel better about...
Read More

Do Bankruptcy Trustees Take Your Savings? What is Considered an Asset in Bankruptcy and How Does It Affect the Money You’ve Saved?

Bankruptcy trustees gain access to a variety of your assets when you file. But what is considered an asset in...
Read More

Can Filing for Bankruptcy Help You Protect Your House?

fiHow filing for bankruptcy affects your home is one of the greatest concerns people have when they consult with bankruptcy...
Read More

Should I Refinance a Student Loan I Can’t Discharge in Bankruptcy?

Student loan debt is overwhelming many people. Could refinancing be the answer to help you avoid bankruptcy if your student...
Read More

Can Student Loan Consolidation Help You Avoid Bankruptcy?

One of the most common questions people have when they consider bankruptcy is “can student debt be discharged in bankruptcy?”...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions