If you have had a discharged chapter 7 or chapter 13 bankruptcy recently you can still qualify for a mortgage to refinance or buy a home. There are even mortgage programs availible for borrowers who are one day out of bankruptcy discharge. Most if not all of these bankruptcy mortgage programs are availible fro sub prime lenders and will need to be originated through a mortgage broker.If you are seeking a mortgage after bankruptcy, make sure that you make all of your payments to all creditors on a timely basis. Even a single late payment following bankruptcy on nearly any account may ruin your chances of obtaining a mortgage with good terms.
The length of time between good credit and bankruptcy depneds on several factors. If the bankruptcy was caused by outright recklessness, the lender will assume that the probability that it will happen again is high, unless you convince them otherwise.
After you have gone through the chapter 7 or chapter 13 bankruptcy process, its important that you start rebuilding your credit. Having a good mix of revolving and installment credit can help establish credit history and add tradlines into your credit report.
Getting a mortgage after having a bankruptcy is very common. The length of time may vary but lenders are willing to work with you once you have started to restore your credit.
In order to have a chance at qualifying for a conforming mortgage, mortgage for those with good credit and/or compensating factors, your bankruptcy generally needs to be discharged for at least 2 year. After your bankruptcy has been discharged for 2+ years this opens up a lot more doors and financing options for you altogether.
If you have been in a Chapter 13 Bankruptcy for over a year and have paid your mortgage and trustee in a timeley fashion, you may be eligible for an FHA refinance loan. You will need to get permission from your trustee.
