Filing bankruptcy doesn’t mean it’s over and you can’t get loans for homes, cars and more. It’s a common thing that occurs and sometimes things happen. Banks and lenders understand this… but the question “How long after chapter 7 can I get a conventional mortgage?” is one that sits in our heads as we look at opportunities and want to get a home loan.
Chapter 7 is the most common type of bankruptcy. During a Chapter 7, a court wipes away all your qualifying debts. But, your credit score will also take a major hit.
If you’ve gone through a Chapter 7 bankruptcy, you need to wait at least 4 years after a court discharges or dismisses your bankruptcy to qualify for a conventional loan.
To qualify for a VA or FHA loan, you only need to wait 2 years after discharge or dismissal, as Government-backed mortgage loans are a bit more lenient.
The road to repair is obvious. Cleaning up your personal financial standing will dramatically improve your chances of getting a conventional mortgage even after filing for a chapter 7 bankruptcy.
As with all things, there is work involved by you, the buyer, that needs to take place. If you are committed to putting that work in, and evolving your financial standing so it looks great for lenders approvals – then great! Your path will become easier and you can get a mortgage even with previous negative issues like a bankruptcy on your credit history.
Our goal is to help you get approved. We’ll help you along the way to prepare for that future.
Some of the things you’ll need to get ready to qualify for a mortgage are:
- Your driver’s license (Government-issued ID)
- Down payment starts at 3%, depending on a program
- Bank Statements, showing amount enough to cover down payment, closing costs and reserves
- Income-proving documents (W2, paystubs or Taxes/1099 if self-employed), but we also offer programs with no income verification!
Those documents we will need to start working with you and pre-qualifying you for a mortgage. The main thing you have to remember is that the Bank needs to be 100% sure you have a capacity for a mortgage payment every month. Income for that payment can come in many different forms and we are here to help figure out the best program for you!