If you’ve recently gone through bankruptcy, you’re probably wondering how you’re ever going to get a loan again. The good news is that it is possible to rebuild your credit after bankruptcy. And while having bad credit can make it difficult to get a loan, it’s not impossible. There are still plenty of options available to those with less-than-perfect credit, including mortgages.
What are Bad Credit Scores?
A bad credit score is defined as a score below 630 on the FICO scale. A low credit score can make it difficult to qualify for a mortgage, but it’s not impossible. There are a few things you can do to improve your chances of qualifying for a mortgage with bad credit, such as:
- Improving your credit score by paying down debts and making on-time payments
- Working with a co-signer who has good credit
- Applying for an FHA loan, which has more lenient credit requirements than conventional loans
Can I get a mortgage with bad credit?
The short answer is yes. There are plenty of lenders out there who are willing to work with borrowers with less-than-perfect credit. However, you may not qualify for the best interest rates or terms if your credit score is on the lower end of the spectrum. That’s why it’s always a good idea to shop around and compare rates from multiple lenders before making a decision.
What about bankruptcy?
Bankruptcy is another obstacle you may face when trying to get a mortgage. However, it’s important to know that you can still qualify for a mortgage after bankruptcy. The key is to wait until your bankruptcy discharge date and then begin rebuilding your credit. There are a few things you can do to help improve your chances of qualifying for a mortgage after bankruptcy, such as:
- Saving up for a larger down payment
- Working with a housing counselor or financial advisor to create a budget and improve your financial situation
- Applying for an FHA loan, which has more lenient requirements than conventional loans
The Bottom Line
Bad credit doesn’t have to be the end of the world—there are still plenty of options available to those with less-than-perfect credit scores. And while bankruptcy can make it more difficult to get a loan, it’s not impossible. There are steps you can take to improve your chances of qualifying, such as paying down debts, saving up for a larger down payment, or working with a housing counselor.
If you’re ready to start the process of qualifying for a mortgage, contact us today. We’re here to help you every step of the way.