Bad Credit and Getting Approved for A Mortgage Loan in Kentucky
1. Credit Score
Typically speaking, if you want to get a mortgage after bankruptcy you’ll need to allow time to pass. For conventional mortgages you’ll need to wait four years after Chapter 7 bankruptcy or two years after Chapter 13 bankruptcy. But there are some other mortgage options that require a shorter waits.
Two years after your Chapter 7 bankruptcy discharge you may apply for an FHA loan. If you filed Chapter 13 bankruptcy, then you’ll only need to wait until you’ve made twelve months of satisfactory payments, and you’ll need to get the approval of the bankruptcy trustee. But if you want to be given serious consideration, you’ll need to provide a clear explanation for why you filed bankruptcy. For example, maybe you filed Chapter 13 bankruptcy because you had a medical emergency and was unable to pay your medical bills.
If you’re a veteran, you can get a VA mortgage two years after your bankruptcy discharge. This VA application process can be challenging, but in some ways it’s more lenient since post-bankruptcy credit issues such as a foreclosure won’t restart the 2-year waiting period. However, credit issues after bankruptcy might affect your interest rate, so take care to keep your credit as clean as possible.
If you live in a rural area, you may qualify for a USDA mortgage three years after your bankruptcy discharge. It’s important to note that while the USDA provides loans to rural residents it’s only for property that will serve as the borrower’s primary residence. The USDA will not finance the purchase of income property or a vacation home.
As you prepare to apply for a mortgage after bankruptcy, keep in mind that the mortgage lender will take into account the totality of your financial situation—your finances, credit history, credit score, and any extenuating circumstances.
NMLS Consumer Access
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916 http://www.nmlsconsumeraccess.org/
Text or call 502-905-3708- Not affiliated with your current lender, the FHA, or any other government agency. This message has not been approved by any government agency. Offer for FHA Cash Out Program only and all other offers will have different terms. Equity reserves is only an estimate and may be higher or lower depending on market conditions and amortization. Verification of income, employment and home value may apply.
15-Year Fixed-Rate Mortgage:
The payment on a $200,000 15-year fixed-rate loan at 6.875% and 75% loan-to-value ratio (LTV) is $1,491.94 with .125 points due at closing. The annual percentage rate (APR) is 7.987%. Payment does not include taxes and insurance premiums. The actual payment amount will be greater. Rates shown valid on publication date of 09/23/2023. Some state and county maximum loan amount restrictions may apply.
30-Year Fixed-Rate Mortgage:
The payment on a $200,000 30-year fixed-rate loan at 7.75% (APR 7.983%) and 75% loan-to-value ratio (LTV) is $1,072.42 with .75 points due at closing. One point is equal to one percent of your loan amount. Payment does not include taxes and insurance premiums. The actual payment amount will be greater.
Rates shown valid on publication date of 09/23/2023.
Guidelines may vary for self-employed individuals. Formal approval will be subject to satisfactory verification of income, assets, credit, property condition and value. Additional restrictions/conditions