Financing in Kentwood>Question Details

kimann11, Home Buyer in Kentwood, MI

How long after bankruptcy do you have to wait to get a mortagage?

Asked by kimann11, Kentwood, MI Thu Apr 12, 2012

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Fannie Mae guidelines are:

Bankruptcy (Chapter 7 or Chapter 11)
A four-year waiting period is required, measured from the discharge or dismissal date of the bankruptcy action.

Bankruptcy (Chapter 13)
A distinction is made between Chapter 13 bankruptcies that were discharged and those that were dismissed. The waiting period required for Chapter 13 bankruptcy actions is measured as follows:
• two years from the discharge date, or
• four years from the dismissal date.
The shorter waiting period based on the discharge date recognizes that borrowers have already met a portion of the waiting period within the time needed for the successful completion of a Chapter 13 plan and subsequent discharge. A borrower who was unable to complete the Chapter 13 plan and received a dismissal will be held to a four-year waiting period.

Multiple Bankruptcy Filings
For a borrower with more than one bankruptcy filing within the past seven years, a five-year waiting period is required, measured from the most recent dismissal or discharge date.
Note: The presence of multiple bankruptcies in the borrower’s credit history is evidence of significant derogatory credit and increases the likelihood of future default. Two or more borrowers with individual bankruptcies are not cumulative, and do not constitute multiple bankruptcies. For example, if the borrower has one bankruptcy and the co-borrower has one bankruptcy this is not considered a multiple bankruptcy.
0 votes Thank Flag Link Fri Apr 13, 2012
If you have gotten the bankruptcy discharged, generally you can get a decent mortgage after two years. If you have a larger down payment, you may be able to find a lender that can help you get a mortgage before then. If you would like to talk directly to a lender about whether or not you could qualify for a mortgage, let me know and I'll give you a few names. Thanks!
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0 votes Thank Flag Link Fri Apr 13, 2012
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