Obtaining a Mortgage Following Bankruptcy

Homebuyers can qualify for a mortgage one day out of bankruptcy with low credit scores and bad credit. In this article, we will be discussing qualifying for a mortgage one day out of bankruptcy with non-QM loans on a home purchase and/or refinance transaction at Capital Lending Network, Inc. Homebuyers can qualify for a home mortgage after bankruptcy. However, government and conventional loans programs require borrowers to meet their individual waiting period requirements after bankruptcy.

Mortgage Waiting Period After Bankruptcy

FHA, VA, USDA, and Conventional loans all have minimum waiting period requirements after bankruptcy Waiting period requirements are different depending on the home mortgage program. Just waiting out the waiting period after bankruptcy does not automatically qualify you for a government and/or conforming loan. Lenders want to see borrowers have rebuilt and reestablished their credit and have been timely all of their monthly debt payments. No late payments after bankruptcy. Borrowers also need to meet the minimum credit score requirements and other agency mortgage guidelines.

Re-establishing Credit After Bankruptcy To Qualify For A Mortgage

Many people reestablish themselves faster than others after bankruptcy. The minimum waiting period to qualify for a home loan after Chapter 7 Bankruptcy is from 2 years on FHA and VA loans to a four-year waiting period on conventional loans. The housing market is booming with home prices skyrocketing with no signs of a correction. Many homebuyers who have reestablished themselves after bankruptcy can now qualify for a mortgage one day out of bankruptcy with our Non-QM loans at Capital Lending Network, Inc.

In this article, we will discuss and cover Qualifying For A Mortgage One Day Out Of Bankruptcy With Non-QM Loans.

The Booming Housing Market Hurting Homebuyers Who Did Not Pass The Waiting Period Requirements After Bankruptcy

Why a Booming Residential Market Is Harming Home Buyers Who Failed to Wait Post-BankruptcyThe U.S. economy was booming prior to the coronavirus outbreak in the U.S. in February 2020. Unemployment numbers hit historic lows at under 3.5%. Housing prices kept on skyrocketing year after year. Both HUD and the Federal Housing Finance Agency (FHFA) kept on increasing FHA and Conforming Loan Limits for the past four years. Never in history have home prices increased without a correction and/or any signs of a correction.

The COVID-19 Impact On The Housing And Mortgage Markets

When the COVID-19 outbreak hit the U.S. in February 2020, many pre-approved homebuyers shopping for homes put their home-buying plans on hold. Rumors that we will have another housing crisis and correction spread like wildfire. Many homebuyers thought that this was a lucky break where they put their home-buying plans on hold until there was a housing market correction. Unfortunately, the so-called experts and mainstream media were all wrong.

Mortgage One Day Out Of Bankruptcy Process

It’s no secret that the mortgage process can be long, stressful, and difficult. For those who have just gone through bankruptcy, the process can seem even more daunting. But there is hope! It is possible to get a mortgage one day out of bankruptcy.

Here are a few things you need to know if you’re considering this option:

  • You’ll need to work with a lender who specializes in working with people with bad credit. There are plenty of these lenders out there, so shop around and find one that you feel comfortable working with.
  • Be prepared to pay a higher interest rate than someone with good credit. This is because you’re considered to be a higher risk, so lenders will charge you more in order to cover their risks.
  • You’ll need to have your finances in order. This means making sure that you have steady income and savings, as well as being up-to-date on all of your financial obligations.
  • Be ready to put in some hard work and diligence. Getting a mortgage one day out of bankruptcy will likely require a lot of time and effort on your part, but the payoff can be worth it if you’re able to get back on your feet financially and rebuild your credit score over time.

If you’re thinking about getting a mortgage one day out of bankruptcy, then don’t hesitate – just get started! With the right lender and a little bit of hard work, you can make your homeownership dreams a reality.

Strong Housing Market: More Demand For Housing Versus Inventory Skyrocketing Home Prices

Housing prices went the other way than forecasted. Home prices have skyrocketed. Demand for housing is stronger today than it was prior to the coronavirus outbreak. The Central Bank lowering interest rates to zero percent plummeted mortgage rates to historic low rates. Today, 30-year fixed-rate mortgage rates dropped again to an all-time record low at 2.70%. How rates and the fear of home prices continuing to skyrocket have people expediting their home purchase plans. Many experts and economists do not foresee any housing correction in the near future.

Strong Housing Market Forecast Expected To Continue

Market analysts and economists expect mortgage rates to remain at historic lows for years to come. To add fuel to the fire, the major political divide between Democrats and Republicans is destroying cities run by Democrats like Chicago, New York City, Portland, Los Angeles, Minneapolis. Riots, BLM, defunding the police activists, and politicians politicizing the coronavirus outbreak are making city dwellers flee the city and move to the suburbs. More and more renters are shopping for homes in the suburbs. For many, right now is the time to buy a home. In two or three, or four years, home prices may be out of reach for many. This is the exact reason why our Mortgage One Day Out Of Bankruptcy Non-QM Loan Program is in such major demand.

Non-QM Mortgage One Day Out Of Bankruptcy Eligibility Requirements And Guidelines

What are the requirements and guidelines for a non-QM mortgage on bankruptcyCapital Lending Network, Inc. is one of the very few national mortgage companies that offer Non-QM Mortgage One Day Out Of Bankruptcy. Just not long ago, those who had a bankruptcy and/or foreclosure were restricted in qualifying for a mortgage for several years. FHA and VA require a two-year waiting period after the Chapter 7 Bankruptcy discharged date to qualify for an FHA and/or VA loan. USDA requires a three-year waiting period after the Chapter 7 Bankruptcy discharge date to qualify for USDA loans. Fannie Mae and Freddie Mac have a four-year waiting period after the Chapter 7 Bankruptcy discharged date. Jumbo lenders normally have a seven-year waiting period after bankruptcy.

Skyrocketing Home Prices A Concern For Homebuyers

In today’s hot booming housing market with skyrocketing home prices, what will happen to house prices in two to four years?  Would you still be able to afford a home in two to four years after you have met the waiting period requirements after bankruptcy? No need to wait to qualify for a mortgage with our One Day Out Of Bankruptcy. The down payment requirement is dependent on various factors. A 30% down payment is required if the bankruptcy has been seasoned under 12 months. As the bankruptcy ages, the down payment requirement becomes less. Mortgage rates depend on the down payment and the borrower’s credit scores.

Benefit Of Non-QM Mortgages

There is no maximum loan limit on these one-day bankruptcy programs. There is no private mortgage insurance required on non-QM loans. There is no pre-payment penalty. For more information about our Non-QM Mortgage One Day Out Of Bankruptcy, please contact us at Capital Lending Network, Inc. at 800.900.8569 or text us for a faster response. Or email us at contact@capitallendingnetwork.com. The team at Capital Lending Network, Inc. is available 7 days a week, on evenings, weekends, and holidays.


Peter has 7+ years of experience in residential lending. He is a licensed Realtor in the Chicagoland area.

3 Comments

I have been looking for a mortgage lender that will work with my low credit score. A lender from a different company gave me this information and said you may be able to help , I am looking to purchase a home in 2 months, I have 15,000 to put down on in home cash. Please any information you can lend would be great , thank you in advance .

I am interested in a owner occupied home loan either FHA or 5% Conventional . The property I am interested in is a duplex with one of the units rented. My question is if the rental income can be used calculating the DTI ratio.?

I filed Chapter 13 on May 14, 2014. I was discharged in August, 2019 (5 year plan). A home was foreclosed as part of the bankruptcy. (Home foreclosed January, 2020 by agreement.)
Do you have the terms for the Non-QM Loans? I don’t think I fit FHA until January 2023, but I may qualify for Conventional (FNMA) after May 2021?
Just trying to see my options.

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