QUESTION
Can a bankruptcy on someones credit keep them from getting a loan for a house?
Asked on Aug 31st, 2011 on Bankruptcy - Virginia
More details to this question:
If you have a bankruptcy on your credit report, will that prevent a person from getting a loan for a house? If so how long after a bankruptcy can you get a loan for a house?
11 ANSWERS
Yes. Right now lenders are looking for bankruptcy within the last three years as a disqualifier.
Answered on Sep 26th, 2011 at 10:24 AM
If someone is in the position to file for bankruptcy it is unlikely that they could qualify for a mortgage. It is the same after filing except that you are then getting a fresh start. It depends on how you handle the fresh start if you can qualify for a mortgage. Usually you have to wait two years with you earning a steady income and paying all of your monthly bills on time to build up your credit to get a mortgage. The benefit after filing a bankruptcy is that there are usually much less in the way of monthly bills to pay.
Answered on Sep 06th, 2011 at 1:55 PM
After one files for bankruptcy, it typically takes about 6 months after discharge to get an installment loan about two years to get an FHA mortgage.
Answered on Sep 05th, 2011 at 8:59 PM
Bankruptcy Attorney serving Cleveland, OH
at
Benson Law Firm
Update Your Profile
Many of my clients work with a credit score consultant post-discharge in order to get to the point where they can buy a home. How long it takes depends largely on your strategy and your discipline in implementing that strategy.
Answered on Sep 02nd, 2011 at 11:44 AM
Bankruptcy Attorney serving Livonia, MI
at
Charles J. Schneider, P.C.
Update Your Profile
If you make a million dollars a year no time at all. However you are most likely not in that category of income. The point is that there are many components to financing a home. Most importantly you income, your down payment, your monthly payment, etc. your credit report is one facet of evaluation. A prior bankruptcy alone does not prevent you.
Answered on Sep 02nd, 2011 at 11:03 AM
Daniel James Wilson
You can rehabilitate your credit to qualify for a home loan. It takes a few years. The key is estahlishing a history of on time payment of credit obligations. I don't deal with this so I don't know the details. Look for a mortgage broker (NOT a realtor) who has experience in this area.
Answered on Sep 02nd, 2011 at 9:52 AM
Glen Edward Ashman
A bankruptcy does not prevent a house loan, but some lenders will say no as a result. Many factors in your history will affect your ability to get a loan. Usually after 2 or more years, other factors matter more than the bankruptcy.
Answered on Sep 02nd, 2011 at 9:22 AM
Bankruptcy Attorney serving Concord, CA
at
William Rubendall Attorney at Law
Update Your Profile
A lender can consider a bankruptcy on a credit report as far as an application for a home loan. Some lenders will consider lending after a period of time has passed since bankruptcy. The length of time varies, usually between 2 and 7 years on a case by case basis.
Answered on Sep 02nd, 2011 at 5:41 AM
Bankruptcy Attorney serving Hayward, CA
at
Carballo Law Offices
Update Your Profile
Yes... a person is not eligible for a conventional loan for two years after bankruptcy minimum and because of the need to rebuild credit score, which takes time, it usually takes longer than two years before the bank will approve a mortgage. It also depends on income, percentage downpayment, and other factors. Most likely it will take three to five years to be able to obtain a mortgage assuming you can put down at least 20% down, the income is sufficient and a good record of payments to credit cards, vehicles, and other debts is established.
Answered on Sep 02nd, 2011 at 5:03 AM
2 Awards
It does affect your credit. You can re establish credit over time-usually 3 years. It is very fact specific.
Answered on Sep 02nd, 2011 at 4:57 AM
Bankruptcy Attorney serving Herndon, VA
at
Maureen O'Malley
Update Your Profile
You might be eligible for a home loan 2-3 years from your bankruptcy.
Answered on Sep 01st, 2011 at 8:49 PM