How Long Will I Wait Before I Can Purchase a Home After Bankruptcy?
Lenders will look at the details of your bankruptcy discharge and your credit report to determine whether or not you can qualify for a home loan. They will also want to be sure that you can pay back the loan on time. Different types of home loans have different credit score requirements. FHA loans, for example, have a lower credit score requirement.
Extenuating circumstances
Extenuating circumstances, also known as “non-recurring events” which occur for reasons outside the borrower’s control, may be used to qualify for a mortgage. In some cases, this can shorten the waiting period. In these situations, the borrower must provide a letter explaining the circumstances, along with supporting documents, to the lender.
Extenuating circumstances may reduce your waiting period for bankruptcy transactions by as much as 50%. The event must have occurred within twelve months of filing for bankruptcy and must have resulted in financial hardship. It may be a temporary job loss or a serious illness. However, if the extenuating circumstances have caused financial hardship, it may be possible to qualify for a loan that reduces your housing costs by 50%.
The waiting period for buying a home after bankruptcy varies depending on the circumstances. Generally, a bankruptcy applicant must wait seven to eight years before being able to purchase a home. However, if the bankruptcy was declared over a longer period, the waiting period can be reduced to two or three years.
Getting pre-approved for a home loan
Getting pre-approved for a home mortgage after bankruptcy can be a difficult process. However, there are some options available. Most lenders will require that you complete a waiting period and meet other requirements before they will pre-approve you. Understanding how bankruptcy affects your ability to qualify for a mortgage will help you make an informed decision.
After filing for bankruptcy, you must wait at least two years to be pre-approved for a conventional home loan. This means you must restore your credit score by paying bills on time and keeping low balances on revolving credit accounts. However, you can still apply for an FHA loan, which is insured by the Federal Housing Administration, which has more flexible lending guidelines. Typically, FHA loans are available in 30-year and 15-year terms.
The waiting period varies according to the type of financial disaster you’ve experienced. For instance, the waiting period for Chapter 13 mortgages is 12 months, whereas the waiting period for VA loans is five years. In some cases, extenuating circumstances may reduce the waiting period to three years.
The waiting period after bankruptcy
Before you can purchase a home after bankruptcy, you must rebuild your credit. This is a critical step as it is required to get a mortgage. The minimum credit score varies depending on the lender, but it is typically around 580 or higher. With a higher credit score, you can get a lower down payment and better interest rates.
There are several ways to improve your credit score. One of the best ways is to start improving your credit score prior to filing for bankruptcy. You can do this by following some common-sense tips. By restoring your credit score before bankruptcy, you can start afresh with a higher score.
When you file for bankruptcy, many mortgage lenders will impose a waiting period. The waiting period can be as long as two years, but for many people, this time period can be reduced to a year or less. Some lenders will reduce the waiting period to six months if you are able to demonstrate that you have been responsible with your finances.
If you have any questions, you can get a free consultation with Ascent Law LLC:
Ascent Law LLC:
8833 South Redwood RoadSuite C
West Jordan, UT 84088
(801) 676-5506
https://g.page/ascentlaw?share
https://www.ascentlawfirm.com/if-i-file-bankruptcy-will-i-lose-my-property/
When you need a Divorce Lawyer, contact this law firm:
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West Jordan, Utah
84088 United States
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Lindon, Utah
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Lindon, Utah
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The Wasatch mountain range north of Lindon.
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Location in Utah County and the state of Utah
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| Coordinates: 40°20′19″N 111°42′58″WCoordinates: 40°20′19″N 111°42′58″W | |
| Country | United States |
| State | Utah |
| County | Utah |
| Settled | 1850 |
| Incorporated | March 5, 1924 |
| Named for | Linden tree |
| Area | |
| • Total | 8.54 sq mi (22.11 km2) |
| • Land | 8.35 sq mi (21.63 km2) |
| • Water | 0.19 sq mi (0.48 km2) |
| Elevation
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4,642 ft (1,415 m) |
| Population
(2010)
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| • Total | 10,070 |
| • Estimate
(2019)[2]
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11,100 |
| • Density | 1,329.34/sq mi (513.27/km2) |
| Time zone | UTC-7 (Mountain (MST)) |
| • Summer (DST) | UTC-6 (MDT) |
| ZIP code |
84042
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| Area code | 801 |
| FIPS code | 49-45090[3] |
| GNIS feature ID | 1442630[4] |
| Website | www.lindoncity.org |
Lindon is a city in Utah County, Utah, United States. It is part of the Provo–Orem, Utah Metropolitan Statistical Area. The population was 10,070 at the 2010 census. In July 2019 it was estimated to be to 11,100 by the US Census Bureau.
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How long will I have to wait before I can qualify to purchase a home after filing bankruptcy?https://t.co/VnqXLifGH1 pic.twitter.com/O0b8GzNC9Q
— Jan Meriss Alfonso (@MerissJan) November 10, 2022
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