Before going into a 2022 Conventional Loan After Bankruptcy you must first understand the differences between the two types of bankruptcies, Chapter 7 and Chapter 13. Chapter 7 Bankruptcy is also known as a complete liquidation as most of the assets you have get liquidated (which is normally minimal since the reason you are claiming bankruptcy is a lack of assets in the first place) and most of your debts get discharged and forgiven per the Chapter 7 Bankruptcy filing. Chapter 7 Bankruptcy acts like a “reset” button so to speak in the sense that it gives you a fresh start to your finances and ideally the thought is you won’t get in the situation you were previously and will have learned from this experience. The only debts that cannot be discharged in the Chapter 7 Bankruptcy are government debt such as income taxes, federal backed student loans, and any fines owed to the city or state. All other debts will be discharged and your list of debtors will be wiped clean.
The other bankruptcy filing is a Chapter 13 Bankruptcy. Being employed is vital or else you will not be qualified to file a Chapter 13 Bankruptcy. Chapter 13 Bankruptcy uses your current wages in order to determine what can be allocated in order to be distributed to your creditors. The percentage of your wages that is determined to go to your creditors is paid monthly for a term of 5 years. After the 5 years is up the remaining debt that is owed is discharged and the filer is debt free. Yes, you have paid towards this plan for 5 years but you came nowhere close to paying your creditors but since you stuck to your agreed to repayment plan your debt is relieved.
2022 Conventional Loan After Bankruptcy has some guidelines you are going to need to follow in order to get a Conventional Loan. 2022 Conventional Loan After Bankruptcy requires a mandatory waiting period of 4 years after a Chapter 7 Bankruptcy discharge date. In terms of a Chapter 13 Bankruptcy, there is a 2 year waiting period needed in order to qualify for a Conventional Loan. After your bankruptcy has been discharged, mortgage lenders are going to want to ensure there haven’t been any late-payments in the time since your discharge as you want to show that you have control of your finances. Making all your payments on time and re-establishing your credit is vital for a Conventional Loan as you will need to make sure you have at least a 620 FICO credit score in order to get a loan. The higher FICO credit score you can establish will benefit you by getting you a lower interest rate. If you just have the minimum credit score, you can guarantee a high interest rate as 740 is normally required for the best interest and the farther you get away from 740, the higher interest rate you will get.
If you’re looking for a 2022 Conventional Loan After Bankruptcy you are in the right place as I can assist you in achieving the goal of a 2022 Conventional Loan After Bankruptcy. The first thing we will need to do is get you an in-depth pre-approval so we can confidently issue that pre-approval to you so you can go out and put an offer in on a home. If you are ready to buy again and feel you meet the requirements then please reach out to me anytime at 888-900-1020