Can I Qualify for a Mortgage Loan After Colorado Bankruptcy?

Learn whether you can qualify for a mortgage loan after Colorado bankruptcy.

My clients often worry if they can qualify for a mortgage loan or buy a home after filing Chapter 7 or Chapter 13 bankruptcy in Highlands Ranch, Littleton or anywhere else in Colorado. In Colorado, you often can qualify. How you qualify for the loan just depends on certain factors. In today’s blog, we’ll discuss how filing Chapter 7 or Chapter 13 bankruptcy can affect when you can qualify for a home loan in Colorado.

Qualifying for a Mortgage Loan in Denver After Chapter 7 Bankruptcy

If you filed Chapter 7 bankruptcy in Denver or Parker, the time it takes to qualify for a home loan varies. It depends on which type of mortgage you apply for. If you’re applying for a conventional mortgage loan, you usually have to wait at least four years after your bankruptcy discharge. A Federal Housing Administration (FHA) loan or Veterans Administration (VA) loan usually require you wait two years after your bankruptcy discharge to qualify.

Qualifying for a Mortgage Loan After an Aurora Chapter 13 Bankruptcy

If you filed Chapter 13 bankruptcy in Aurora or Lone Tree, you also have to wait until you’ve received your bankruptcy discharge to qualify for a mortgage loan. Debtors usually receive their Chapter 13 bankruptcy discharge between three and five years. Again, the time it takes to qualify for a mortgage loan for Chapter 13 depends on the type of mortgage you apply for. If you’re applying for a conventional mortgage loan, usually you can qualify between two and four years after your bankruptcy discharge. Any required payments you’ve had during your bankruptcy must have also been made on time for you to qualify. For a FHA or VA loan, you can typically qualify after 12 months of monthly payments to a trustee.

Prepare for Your Centennial Mortgage Loan: Rebuild Your Credit Score

Secured credit cards are often a good way to rebuild your credit score.

After your Centennial bankruptcy discharge, you’ll have a clean slate. With a clean slate, you can start over and rebuild your credit score. Rebuilding your credit score is another way you can qualify for a mortgage loan. A good way to rebuild your credit score is by getting a secured credit card. That way, you’re limited on what you can spend. For instance, if you deposit $300 in the bank, you’ll only be able to spend up to $300. This eliminates any chance of you overspending, and helps you discipline yourself on how you spend your money. This type of credit card will help you build a track record for creditors to see.  Creditors want to know you’re trustworthy before giving you a mortgage loan – ensuring you can pay back the loan. That’s why it’s crucial you rebuild your credit score.

More Questions? Contact a Skilled Greenwood Village Bankruptcy Lawyer

There are more requirements for qualifying for a mortgage loan in Greenwood Village and throughout Colorado that you should be aware of. If you’re considering Chapter 7 or Chapter 13 bankruptcy and would like to know more about qualifying for a mortgage loan after your case is discharged, always consult an experienced bankruptcy lawyer.

Are you worried about how filing for Chapter 7 or Chapter 13 bankruptcy will affect qualifying for a mortgage loan or buying a home in Thornton, Highlands Ranch or Aurora? If so, contact Christian bankruptcy attorney Barry Arrington to request your free consultation meeting at 303-205-7870 or submit the “Get Help Now” form. He will help you get the best, fresh start possible.

Image Courtesy of Naypong / FreeDigitalPhotos.net

 

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