Buying a home after bankruptcy is possible, but will take time and patience.
Home loan lenders will rarely approve you with a bankruptcy for the first three years.
Your credit score post-bankruptcy will drop up to 240 points, giving you a "Very Poor" credit rating.
We suggest 5 steps to qualify for a home loan after bankruptcy:
- Open two credit builder cards (payment history is 35% of your score)
- Open one credit builder loan (credit mix is 10% of your score)
- Find a friend or family member to add you to their old credit card(s)
- Find a friend or family member willing to co-sign
- Dispute the accounts for validity and accuracy
Can you get a loan while in chapter 7?
Qualifying for a loan while in Chapter 7 is possible. You want an FHA loan. The only requirement on these loans is having at least two positive lines of credit (installment loans and/or revolving accounts). A score of 580 or higher will pay 3.5% down, while a score below that will pay 10% down.
Get Your Bankruptcy Removed Professionally
In some cases, we recommend speaking with a Credit Repair professional to analyze your credit report. It's so much less stress, hassle, and time to let professionals identify the reasons for your score drop.
If you're looking for a reputable company to increase your credit score, we recommend Credit Glory. Call them on (800-807-4388) or setup a consultation with them. They also happen to have incredible customer service.
Credit Glory is a credit repair company that helps everyday Americans remove inaccurate, incomplete, unverifiable, unauthorized, or fraudulent negative items from their credit report. Their primary goal is empowering consumers with the opportunity and knowledge to reach their financial dreams in 2020 and beyond.