How do you get a mortgage with a bankruptcy?

[adam999]

Hi All,

Is it possible to get a mortgage after filling bankruptcy .....?

[willingtocope]

Absolutely. Might have to wait a year or two, and have a decent job, but its possible. You;ll pay a higher interest rate, and probably PMI. Find a broker you trust,,,,

[WhoCares1000]

I would say more like 2 - 5 years now after the BK. The banks have gotten a little tighter with their standards in the past couple of years. In the mean time, rent as cheap as possible and save up as much cash as possible. That should allow you to get a 20% down payment easily.

[Guest usctrojanalum]

Agree with WhoCares Banks only the past 2-3 years have gotten really stingy and are no longer giving out money. It's closer to 3-5 years after a BK now with a decent job.

[LostMind]

The mortgage company should take into account that you cant file bankruptcy again for X number of years thus making you a lower risk to finance.

I have had people in finance tell me they considered someone one month out of BK a lower risk than someone 10 years past.

[WhoCares1000]

True, someone just out of BK is less of a risk for short term loans such as credit cards and auto loans BUT a mortgage is not a short term loan and you have to thing "What is the borrower going to do 10 years from now." It is easy to close a credit card account or repo a car and sell it. It is another thing to foreclose as we have been finding out. Foreclosure is quite a bit slower than other remedies.

Also, in many states, the law prevents the creditor from recovering a deficiency if the borrow defaults. This means that the borrow would not be on the hook for the full loan if they stop paying.

For those reasons, it is harder to get a mortgage after a BK than a credit card or an auto loan.

[jq26]

I'm told roughly 3 years now. It won't affect whether or not you have PMI. If you are lucky enough to be able to save 20% to put down over the next few years and you can get your credit scores up, then you'll get a great rate and no MI (or PMI). If you can't get 20% saved, then you'll have to pay mortgage insurance.

Don't ever be late even one time on any credit line after the bk, or your score will tank enough to knock you out of mortgage approval range.

[Methuss]

It is two years for FHA. Three for USDA rural (which has no MI and no downpayment requirement). Conventional is up to the lender.

You have to have re-established good credit or not incurred any credit post-discharge. The interest rate you pay will be tied more to the credit score you have than to the existance of the BK record.

[bkbankruptcy]

Is it possible to take out a mortgage shortly after you have filed bankruptcy? In a word, yes. In fact, you might be surprised by the options that are available to you.

Almost anyone can get credit soon after a bankruptcy.

[WhoCares1000]

Is it possible to take out a mortgage shortly after you have filed bankruptcy? In a word, yes. In fact, you might be surprised by the options that are available to you.

Almost anyone can get credit soon after a bankruptcy.

Yes, if you are willing to pay rip off rates from shysters who are more interested in keeping you with bad credit rather than trying to help you out. Better to wait the stated guidelines for a Fannie/Freddie conventional mortgage.