How Soon Can You Get A Mortgage After Bankruptcy?

If you experienced some major problems in life that led you to file for bankruptcy, you may be wondering if you can get a mortgage loan after this. Getting a mortgage loan after bankruptcy is not impossible, but you will have to wait for a certain amount of time. Here are several important things to know about mortgage loans after bankruptcy.

You will have to wait at least two years

Before you rush out to a lender right after you file, you must understand that there is a two-year waiting period in most cases. You will not qualify for a loan of any kind until you wait for two years from the date of your bankruptcy discharge; however, there are always exceptions to this rule.

To be safe, you should wait the two years. After you do that, you may be able to qualify for certain types of home loans, and one type is an FHA loan. An FHA is a loan backed by the Federal Housing Administration. This type of loan is good for people who do not have perfect credit; however, there are a lot of rules and regulations with these loans. They may also be more expensive than other loan types.

You will have to wait for four years to get a conventional loan

If you prefer to get a conventional loan, you will have to wait for four years from the discharge date of your bankruptcy. Conventional loans are typically preferred over other options, simply because the terms are usually better for borrowers. These loans are designed for people with great credit, though, and that is why one of the requirements is waiting four years after bankruptcy.

Steps you should take while you are waiting

After filing for bankruptcy, you may be able to take some steps that will improve your credit score faster, and you should do this if you want to get a loan as soon as you are eligible. The best way to improve your credit score is by disputing items that are inaccurate on your credit report. Another good option is by taking out a car loan or getting credit cards and using them responsibly.

The other important step you should take after bankruptcy is saving money, because you will need money for your down payment.

Bankruptcy is a big deal and can affect your credit negatively for up to 10 years, but it will not stop you from getting a mortgage loan forever. If you filed four years ago and have a good credit score right now, you should have no problem qualifying for a conventional mortgage loan. You can find out more by talking to a lender today.