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Can we get a new mortgage after bankruptcy if there is a 15 - 20% down payment available on $40K to $50K loan?

Because of disability, I have been forced to give up my business. We are coming from 17 years of home ownership with an excellent credit rating and going into bankruptcy and foreclosure due to physical and financial inability to maintain a large antique home. My wife is on Social .Security, as well. So we are both to on fixed income, which we hope will add to our client reliability, as evidenced by our credit history.

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  Answers  |  1

March 28, 2015

You're going to be looking at a minimum of two years from the discharge date of your bankruptcy before you'll be POTENTIALLY eligible for an FHA loan. You will still have to credit and income qualify, so hopefully you've maintained some positive credit. Typically, you'll need scores in the 600's, and no late payments/charge offs/collections following your BK. A bankruptcy is a serious warning to potential creditors that they need to be cautious about extending credit. Hopefully this helps.

Ted Rood PRO+
Mortgage Professional in Maryland Heights, MO | 03.28.15 @ 06:31

I stand corrected, did not see the foreclosure in addition to the BK. With those two combined, it's hard to say when you'll be able to obtain another home loan. Your best bet is to maintain a timely payment history, keep creating some positive credit activity each month, and probably plan on renting for at least 5-7 years.

$commenter.renderDisplayableName() | 09.30.20 @ 05:56