Upside Down Mortgage

Mortgage Help Indiana

Question: where can i get a loan to buy a house after filing chapter 7 bankruptcy?

I live in Indiana, I'm filing chapter 7 bankruptcy, found another home I would love to buy, and that I can actually afford this time! I've been told that it is possible to buy a house even one day after disclosure, does anyone know of a mortgage company that will do this?

Answer: I am a loan officer that specialized in providing mortgages for people with recent bankruptcies (0 - 36 months from discharge).

There are actually many loan programs that do not require any waiting period after a bankruptcy discharges. However, these programs have other guidelines that make getting a mortgage right after the discharge very difficult.

Here is what you need for most home loan programs that have no waiting period after a bankruptcy discharges:

1. Bankruptcy must be discharged.

2. Twelve months worth of verifiable rent or mortgage payment history (I do have several programs that do not need this).

3. Two credit scores over 600.

4. Credit history - usually one account with 24 months and two with six months history. They have late payment history but they cannot have been charged off, included in the bankruptcy or sent to collections.

5. Income sufficient to pay the mortgage and your other bills.

Even if you can meet the five conditions listed above often you still will not be able to be approved for a loan. Funding a home loan after bankruptcy is like reaching safe ground after walking through a mine field. So please, do not be over confident because you meet these conditions and only use an experienced loan officer that specializes in this type of loan.

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