How Do I Qualify for A Mortgage After Filing Chapter 7 Bankruptcy in Dublin, Ohio?

After getting through the rigorous chapter 7 bankruptcy and discharging debts, the next step is to open a new page of a financial life. This means one can now do many things like buying a new vehicle or even a home.

But the question is how a person qualifies for a mortgage loan after making it through the chapter 7 bankruptcy process:

Many people believe that your dreams or chances of owning a home are dashed after going through chapter 7 bankruptcy.

But that is not always the case. It is important to note that bankruptcy is a lawful and permitted way of discharging debts. As such, it cannot be a reason for mortgage financial institutions to deny anyone a mortgage loan.

Nonetheless, a chapter 7 bankruptcy case can delay or affect the eligibility of a person for a mortgage loan. Below are some of the things one can do to increase their chances of receiving a mortgage loan:

Rebuilding credit

One of the best ways of accessing a mortgage after filing bankruptcy is to come up with a plan to rebuild your credit. Bankruptcy and all the actions that follow can have adverse effects on credit score. But after being discharged from debts, one should take quick and appropriate measures to put their credit score in order.

One of the best ways of rebuilding a credit score is acquiring new credit lines and ensure that fully paying them off by the end of every month. One can easily qualify for a second credit card or a secured card that acts as a debit card and sends back reports to credit agencies.

Paying these lines of credit on time is a reflection that a person can take care of their debts – something that will improve their credit score.

Post-bankruptcy mortgages

Every type of mortgage you qualify for after filing for bankruptcy comes with different requirements. Below are some of the most common types of loans and how to qualify:

FHA loans

FHA mortgage loans are normally insured by the Federal Housing Administration. For one to qualify for this type of loan, they must have filed bankruptcy and discharged at least two years prior.

VA loan

VA loans are offered to U.S. military veterans by the Department of Veteran Affairs. one must fulfill the following criteria to qualify for VA loans:

• Must have served for at least three months during wartime
• Must have served for at least six years as a National Guard officer
• You must have filed for bankruptcy at least two years earlier

USDA loans

USDA loans are normally issued by the United States Department of Agriculture to individuals who would want to buy homes in rural areas. But they must wait until three years after their debts have been discharged to qualify.

Conventional loans

Contrary to other mortgage loans names above, conventional mortgage loans are not sponsored by the federal government. The standard waiting period after chapter seven bankruptcy in four years. However, different private financial institutions may have their own varying waiting periods.