3 Steps to Applying for a Mortgage after Filing for Bankruptcy

While obtaining a mortgage after filing for bankruptcy can be challenging, it is still possible. You can expect lenders to have specific guidelines in place for borrowers who are fresh out of bankruptcy, including a waiting period and other requirements. Keep reading to learn the three steps you should take for best results:

#1: Adhere to a Waiting Period

The length of the waiting period following bankruptcy will depend on the type of bankruptcy you filed and the type of mortgage you choose

  • For chapter 7, you can expect to wait four years for a conventional, two years for an FHA or VA loan, and three years for a USDA loan.
  • For chapter 13, you can expect to wait two years from the discharge date for a conventional and one year for an FHA, VA, or USDA loan.

#2: Rebuild Your Credit Immediately

While bankruptcy will drive down your credit score, you can take steps to rebuild it right away. Increasing your credit score as much as possible will improve your mortgage approval chances. It’s a good idea to work with an expert who can help you inspect your credit reports to fix any inaccuracies.

#3: Save Money for a Down Payment

A larger down payment can help you get approval and better rates on a mortgage loan. So start saving as much as you can to accumulate a larger sum before applying.

Increase Your Chances for Success by Working with Our Consultants

At Midland Mortgage Corporation, our expert consultants can help you clean up your credit, fix your credit reports, and set yourself up for a successful mortgage application. We help you navigate the process of applying for a mortgage after bankruptcy. Contact Midland Mortgage Corporation today to get started.

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