Can I Get A Bad Credit Mortgage If I Just Filed Bankruptcy?

Although most mortgage lenders will only give a bad credit mortgage after a two year waiting period, it is possible, even today, to get such a mortgage just one day after the discharge of a chapter 7 or 11 bankruptcy. It is a very long and arduous procedure but it is workable. However, there are some vital prerequisites such as:

Having A Low Credit Score

Having a minimum low credit score above 600 points is vital, as usually the “good” score range is above 750 points. However, even with a credit score of only 580, a bad credit mortgage many times can be secured, even after a bankruptcy.

Credit History Since Filing For Bankruptcy

The factor of whether a borrower applicant made consistent, on time payments since the discharge of bankruptcy is foremost in importance. This is perhaps the most important factor in determining whether to grant a bad credit mortgage.

Time Elapsed Since Bankruptcy Discharge

Most lenders will grant a bad credit mortgage within two years, and others even the very day after an official discharge.

A Need For Income Verification

The amount of stable income needs to be verified. Consistent job, career or self employment is essential.

Having A Good, Sufficient Down Payment

Having a good down payment and the ability to gather one together is primordial. In many instances, even with a down payment such as 5 percent, a bad credit mortgage can be facilitated.

Re-establishing ones credit, especially after bankruptcy, is hard. And it is a long process. However, by qualifying for a bad credit mortgage, and having a little bit of patience, it can certainly be achieved.

*Affects pricing. With the No Closing Cost Option, borrowers finance the closing costs instead of paying for them at closing. Borrowers who pay closing costs at closing may qualify for a lower interest rate. Some upfront fees (ex. credit report and appraisal) may apply and may be credited at closing.

*Refinancing or taking out a home equity loan or line of credit may increase the total number of monthly payments and the total amount paid when compared to your current situation.