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 (866-718-6029) or setup a consultation with them. They also happen to have incredible customer service.
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