Obtaining A Mortgage After Bankruptcy

Written By Minh Tong
Feb 22, 2018
Facebook Share Icon LinkedIn Share Icon

Mortgage After Bankruptcy. It is still possible to purchase a house after filing for bankruptcy. It can be challenging and you will have to wait some time before your finances are able to bounce back but it is doable.

The most common guideline you’ll have to follow to purchase a home after bankruptcy is to go through a waiting period. Most lenders and mortgage lending programs including FHA and VA usually require this.

The average waiting period is two years. Check with your state and lender to find out what applies your particular circumstances. If your bankruptcy is due to hardship outside of your control, such as job loss or extenuating circumstances, you may be able to reduce that time to one year.

Rebuild Your Credit Quickly To Get Even Faster Approval

Open a credit account or using an existing account, make payments on-time for at least 12 months. Do not close the accounts after paid off. Rather, keep them open and active. Always keep the ratio of what you spend to what’s actually available low. For example, on a $1000 credit card, have an open balance of no more than $300.

Open a secured credit card. Again, make monthly on-time payments to show a good payment history. You can use this card for minor expenses, such as gas, groceries or utility bills.

Show that you know how to handle other types of credit accounts. Whether student loans, personal loans or other types of credit (what is closed end credit?), make regular on-time monthly payments so that you begin to develop a track record of success.

Talk to your lender about the requirements necessary to qualify for a mortgage loan. This includes minimum credit score, debt-to-income ratio, length of waiting period after bankruptcy discharge, if you have extenuating circumstances and if there is anything you can do to reasonably speed up the process.

Even More Tips To Help You Buy Your Home After Bankruptcy

Look for first-time homebuyer programs. If you’ve never purchased a home, look for first-time homebuyer programs. Check out the eligibility guidelines and see if there’s some flexibility for your situation, particularly if you’ve been able to find new employment after a job loss.

Bring more to the table. An FHA loan will normally allow you to purchase with as little as 3.5% down payment. Are you able to put down 5% comfortably? If so, this can only help you.

Look at the various lending programs within your bank to see which will be most attractive to your situation. It doesn’t hurt to ask and to begin preparation as soon as you know you want to buy a home. With planning, proper documentation and persistence, you can bounce back from bankruptcy and buy your new home.

Learn more about the differences between chapter 7 vs chapter 13 and how to avoid bankruptcy as well as what is fair market value.


See how Americor can help

Check Your Options

About Americor

Americor provides debt solutions to thousands individuals and families all over the country. We’re a next-generation debt relief company with a proprietary platform designed to help clients get out of debt quickly. Together we’ll develop a strategy for you to enjoy a debt free lifestyle. Learn more about how Americor can help relieve the burdens of debt today.

18200 Von Karman Ave, 6th Floor Irvine, CA 92612
New Clients:
[email protected]
Existing clients:
[email protected]

We provide debt resolution services. Our clients who make all monthly program payments save approximately 40 – 50% of their enrolled debt (average of 43%) upon successful program completion, before program fees. Fees are based on a percentage of your enrolled debt at the time of starting the program and range from 15%-25% of your enrolled debt. Programs range from 20-48 months. Clients must save at least 25% of each debt due to an enrolled creditor before a bona fide settlement offer will be made. On average, clients receive their first settlement within 4-7 months of enrollment and approximately every 3-6 months thereafter from when the prior debt was settled. Not all Clients complete the program. Estimates are based on prior results and may not match your results. We cannot guarantee that your debts will be resolved for a specific amount or percentage or within a specific timeframe. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting, legal advice or credit repair services. Our program is not available in all states; fees may vary by state. Some programs may be offered through The Law Firm of Higbee & Associates d/b/a Advantage Law. The use of debt resolution services will likely adversely affect your credit. You may be subject to collections or lawsuits by creditors or collectors. Your outstanding debt may increase from the accrual of fees and interest. Any amount of debt forgiven by your creditors may be subject to income tax. Clients may withdraw from the program at any time without penalty and receive all funds from their dedicated account, other than funds earned by the company or fees paid to third-party service providers, as may be applicable. Read and understand all program materials prior to enrolling. Certain types of debts are not eligible for enrollment. Some creditors are not eligible for enrollment because they do not negotiate with debt relief companies. To determine the offers you may be eligible for, Americor conducts a “soft credit pull.” This credit pull does not impact your credit score, creditworthiness, or ability to obtain credit from other sources. The soft pull is not a tradeline entry, it does not report against your score and will only take a few minutes.

Americor Funding, LLC (18200 Von Karman Ave, 6th Floor Irvine, CA 92612) is fully accredited by the Better Business Bureau (BBB), the American Fair Credit Council (AFCC), and the International Association of Professional Debt Arbitrators (IAPDA). CA Department of Financial Protection and Innovation (DFPI) License # 603K913.

Copyright © 2022 Americor Funding, LLC dba Americor Financial. All rights reserved