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Where Can I Find a Mortgage After Filing Bankruptcy?
Friday, Sep 18, 2009
Question: Are there any sub-prime mortgage loans available to folks with reasonable credit but have been discharged from bankruptcy in the last 12 months?
Answer: I have good news and bad news for you. The bad news is that with your recent bankruptcy your mortgage options are extremely limited. The good news is that if you can wait a while, your options greatly improve.First, for all intents and purposes the sub-prime mortgage market no longer exists. It may return, but don't expect salvation in the sub-prime market in the foreseeable future.
Whether you filed a chapter 7 or chapter 13 bankruptcy matters to the lenders. For example, with Fannie Mae and Freddie Mac financing, both require two years of "seasoning" from the date of a chapter 7 discharge before they will consider making a loan. However, if the person declared chapter 13, then
the borrower needs to "season" for 12 months from the filing date before getting a loan.
The FHA requires 36 months of seasoning from the date of discharge before approving an FHA-backed loan.
It is important to note that the lenders revise their seasoning requirements on an ongoing basis, and by the time you read this the seasoning rules I mentioned may be obsolete.
Two last points: A bankruptcy can be a significant black mark
The FHA requires 36 months of seasoning from the date of discharge before approving an FHA-backed loan.
It is important to note that the lenders revise their seasoning requirements on an ongoing basis, and by the time you read this the seasoning rules I mentioned may be obsolete.
Two last points: A bankruptcy can be a significant black mark
on a credit report. It is critical that following a bankruptcy discharge that you make your payments on time. Also, this is a time to focus on savings so that you have the largest possible down-payment that you can afford. Borrowers with a 20% down payment have far more options than borrowers who don't.
See the Bills.com mortgage information page to learn more.
I hope this information helps you Find. Learn & Save.
Best,
Bill
www.bills.com/blog/
See the Bills.com mortgage information page to learn more.
I hope this information helps you Find. Learn & Save.
Best,
Bill
www.bills.com/blog/
Also, make sure to get a free financial health check-up with Bills IQ!
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