Is it possible to purchase a property with a mortgage with a recent bankruptcy?

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Many people will have their credit rating tarnish through this fallout. How can one go about buying a home with a bankruptcy!

3 comments to Is it possible to purchase a property with a mortgage with a recent bankruptcy?

  • †Ask Me Anything†  says:

    You will not be able to get a mortgage if your bankruptcy is recent. I am thinking here you have at least 2 to 5 years of waiting til you can even think about it.

  • zeuz  says:

    Possible, yes. Likely, no.

    You’ll probably have to put 40% or more as a down payment if you’re looking for a loan in the 1st 12 months after discharge.

  • tampabaycreditdoctor  says:

    You will need to re-establish your credit immediately following the bankruptcy discharge date. If you have to start with small secured credit cards, that’s fine. For the USDA Guaranteed Loan program, you normally have to be out of bankruptcy for 3 years (UNLESS) you have a middle credit score of 620, then it doesn’t matter. I have seen people go from the low 500’s and high 400’s, to the mid 600 score range in less than a year. The thing to remember about credit is it counts most as “what have you done recently?”
    The beauty of the USDA program is that if the house is in the right area, and you meet a few qualifying factors, you can purchase no money down and no mortgage insurance!
    As I said though, the “magic number” is 620.

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