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radicus

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How soon after bankruptcy Chapter 7, can I obtain a mortgage?

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Wiating period after Chapter 7

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After a BK Chapter 7 depending on the loan program, the waiting can very. Here is a quick rundown.

1.)    NonQM/Portfolio – 1 day after BK, Short Sale, Foreclosure. Higher rates and fees and down payment and interest is credit score driven.

2.)    VA – 2 years unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 1 year.

3.)    FHA – 2 years unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 1 year.

4.)    USDA Rural Development Loan – 3 years, unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 1 year.

5.)    Conventional – 4 years, unless you had an extenuating circumstance like a death in the immediate family or a serious illness, then the waiting period is reduced to 2 years.

Let me know if you have any further questions, I’d be happy to discuss your scenario with you. Thank you for your inquiry.

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Oh, it's not that bad...

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You can get a loan after Chapter 7 bankruptcy and you do NOT have to wait 10 years, but you will have to wait for awhile.  Different loan types have different restrictions:

-For FHA or VA loans you must wait 2 years from the date of discharge

-For USDA loans you must wait 3 years from the date of discharge

-For Conventional loans you must wait 4 years from the date of discharge

...

Once these time periods have passed, you will then be able to apply for a mortgage, but you must still qualify for the mortgage loan.  That may be the tough part. You must be creditworthy (get that credit score back above 620) and as always, be able to show that you have the income to support the loan.

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Talk to your banker or mortgage broker and have a plan if you want to get a mortgage.  Be realistic about what you will be able to qualify for and work now on repairing your credit score so you'll be able to qualify as soon as you are able to apply.

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Helpful to 0 out of 5 people

Little to zero chance for at least ten years after the bankruptcy was filed. And, it is possible that the application may-ask if you have EVER filed bankruptcy.  You will have to answer 'YES'.

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