In many instances, a bankruptcy will not prevent you from qualifying for a home loan. It does, however, bring some special requirements.
- The reason for the bankruptcy will need to be explained in a detailed letter.
- The bankruptcy must be at least two years old from final discharge. FHA does allow for individuals in a Chapter 13 bankruptcy to qualify sooner. Certain restrictions do apply on these types of loans, so please contact me for a better explanation. These loans are on a case-by-case basis.
- Credit must be re-established. This includes at least three new accounts, preferably installment loans and revolving credit cards since the bankruptcy. All accounts must be current and without any late payments.
- Conventional loans require more time than the two years since the discharge date. Call me for the specifics on these loan types.
I will review your individual situation with you.