Getting a Mortgage loan in Kentucky again after A Chapter 7 or Chapter 13 Bankruptcy.


via SURRENDERING YOUR HOME IN BANKRUPTCY

Getting a Mortgage Again in Kentucky after a Bankruptcy. Guidelines for FHA, VA, USDA AND CONVENTIONAL LOAN PROGRAMS.

 

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Chapter 7 Kentucky Bankruptcy Mortgage Questions

How long do I have to wait to get a mortgage after my Chapter 7 Bankruptcy?

While different programs have different waiting periods, we offers some mortgage options as soon as 2 years after a Chapter 7 Bankruptcy for some Portfolio loans and 2 years from discharge for some government loan programs like FHA, VA, and USDA.

What type of loans are available for a Kentucky mortgage after Chapter 7 Bankruptcy?

We offer a wide variety of loan programs specifically tailored to Chapter 7 Bankruptcy borrowers in all kinds of financial situations: conventional loans, Kentucky VA home loansFHA loansUSDA loans, ! While you may not qualify immediately for all the programs we offer, we will present the best available options, with the best terms, and lowest possible bottom line to you. We customize your options based on your personal goals.

 


Chapter 13 Bankruptcy Kentucky Mortgage Questions

 

How long after bankruptcy can I get a Kentucky mortgage as one year into their plan.

What types of Kentucky mortgages are available for clients with a Chapter 13 Bankruptcy?

As a Kentucky Mortgage Broker we offer programs  after bankruptcy, we offer a wide variety of mortgages for Kentucky borrowers in all kinds of financial situations. We proudly offer Conventional mortgagesVA home loansFHA loansUSDA loans,

What is your waiting period for an Kentucky FHA Loan after bankruptcy?

We are able to secure our Kentucky clients with a FHA loan or USDA loan 12 months after being in the plan for 1 year with a perfect pay history from Chapter 13 Bankruptcy.

How long does it take to refinance after Chapter 13 Bankruptcy discharge?

Mortgages after Chapter 13 Bankruptcy can take as little as 30 days to as long as 3 months. We pride ourselves on great communication and efficient service. The most common issues that slow the process down deal with credit, title, property condition and how quickly we receive requested documentation from you. We love to help our customers clear up these issues and put them on a brighter path.

How long does it take to purchase after Chapter 13 Bankruptcy discharge?

Mortgages after Chapter 13 Bankruptcy can take as little as 25 days to as long as 2 months. We pride ourselves on great communication and efficient service. The most common issues that slow the process down are credit problems, problems with the property itself, and how quickly we receive requested documentation from you. We love to help our customers clear up these issues and put them more soundly on a brighter path.

Can I purchase a home if I am still in my Chapter 13 Bankruptcy?

Yes, you can! Purchasing a home during a Chapter 13 Bankruptcy Plan does have extra steps involved though. Your trustee must approve your purchase and you must make all of your first year’s payments on time into your plan before purchasing a home. There are other challenges of obtaining a mortgage during a Chapter 13 Bankruptcy, but we are skilled at presenting a clear plan for success.

Can I refinance my mortgage with Peoples Bank if I am still in my Chapter 13 Bankruptcy?

Yes, you can! Refinancing a home during Chapter 13 Bankruptcy does have extra steps involved though. Your trustee must approve your refinance and you must make your first year’s payments into your plan before refinancing your home. Many borrowers find that waiting until after the 3rd year of on time payments is best for refinances. Some borrowers have also tapped into the equity in their home getting a cash-out refinance to pay off their Chapter 13 Bankruptcy Plan early. We have experienced great success securing trustees’ approval, especially when the refinancing option saves our borrowers a considerable amount of money.

How long does it take to get a mortgage if I am still in my Chapter 13 Bankruptcy Payment Plan?

Can I get a cash-out with my refinance after my Chapter 13 Bankruptcy?

Many clients choose to obtain a cash-out refinance after their Chapter 13 Bankruptcy. Often our clients have not been able to tap into equity in their home during bankruptcy to make home improvements or consolidate high interest rate debts. Our mortgage programs have different limits set on the amount you can take out relative to the value of your home. Don’t hesitate to call to discuss your options.

As a mortgage lender after bankruptcy, does Peoples Bank offer any options if I own my home outright?

We  have options to obtain a mortgage if you own your home outright. Although the wording is unusual, these mortgages are treated like a cash-out refinance. Cash-out options are best after the 3rd year of your Chapter 13 Bankruptcy Plan or as soon as one day after discharge.

Are there loan programs that do not require a large down payment if I had a Chapter 13 Bankruptcy?

we offer low down-payment mortgages after bankruptcy. FHA loans after bankruptcy have low down-payment options and both VA loan programs and USDA loan programs have zero down-payment options after bankruptcy. Your Mortgage Consultant will go over these options with you and determine if you qualify for one of the programs. They will present the very best options for which you qualify.

What credit score is required to obtain a mortgage after bankruptcy?

We have options for mortgages after bankruptcy with credit scores of 560 and up. .

 

2 thoughts on “Getting a Mortgage loan in Kentucky again after A Chapter 7 or Chapter 13 Bankruptcy.

  1. Factors That Will Affect Your Mortgage Interest Rates After Bankruptcy
    There are two common types of personal bankruptcy, Chapter 7 and Chapter 13. The most common type of bankruptcy is Chapter 7 and it normally results in cancellation of all your previous debts by liquidating your assets. Chapter 13 bankruptcy is known as reorganization bankruptcy, and in it your previous debt is reorganized into a manageable repayment plan over three to five years. Even though bankruptcy can severely affect your credit, it’s possible to improve your creditworthiness to the point where you can obtain a mortgage with competitive interest rates.

    1) Bankruptcy’s Effect on Your Credit Score and your Interest Rate

    Depending on your financial situation it is not uncommon for bankruptcy filers to see a drop in their credit score between 50 – 150 points. Your credit score is one of the most influential factors that affects your mortgage interest rate, as well as your ability to obtain a mortgage after bankruptcy. Don’t let your current credit score affect your decision to buy a house after bankruptcy. Many of our clients are able to rebuild their credit and their credit score during or after their bankruptcy by following our guide (Provide a link here to the other page)

    There are four main credit score levels that have the largest effect on your interest rate:

    Below 620- Having a credit score below 620 usually incurs pricing hits due to increased risk of default. Peoples Bank has found that it is best to take steps to increase your score above this level
    620 to 640- Although this is a small range the difference in rate can sometimes be as big as 1/4 %.
    640 to 680- This is a common credit score range for many borrowers and usually doesn’t affect the interest rate either positively or negatively
    Above 680- Interest rates often improve by around 1/8% when your credit score is over 680.
    2) How Your Current Debt Levels Affect Your Interest Rate

    Your current debt level will have a major impact on whether you qualify for a loan, but will only affect what your mortgage interest rates will be if your Debt to Income ratio is too high to qualify for the loan products with the best interest rates. We suggest making regular on time monthly payments during your Chapter 13 plan and trying to not incur any additional debt in order to qualify for a new mortgage loan.

    3) Loan Programs and Your Interest Rate after Bankruptcy

    One of the factors that can make a large difference in the interest rate you receive is what loan program you qualify for. Usually the loan programs that have the best interest rate after bankruptcy are government backed programs like FHA, VA, and USDA. Portfolio loan options can often have slightly higher rates but can work for those clients that aren’t able to qualify for the government backed programs. The interest rates on Portfolio loans can be from 0.5% to 3% higher than government backed loans. There are several things that can prevent you from qualifying for a government backed loan like credit score, debt-to-income ratio, loan size, location of the property, and your personal income. It is best to speak to an experienced Mortgage Consultant to discuss your options.

    Increase Your Opportunity for a Better Interest Rates After Bankruptcy
    Understanding the filing for bankruptcy is not the end of your financial well-being is very important. You now are in a position for a fresh start.

    Make your monthly payments on time
    Consistently making on-time monthly payments can possibly lower your mortgage interest rates by increasing your credit score when you re-apply for a home loan after bankruptcy. Many loan programs have requirements that you must show that you have begun to re-establish your financial position and are potentially ready for a home loan again. Ensuring that your monthly payments are on time can help improve the appearance of your credit history to lenders.

    Get a secured credit card
    A secured credit card is a type payment form where you put down a cash deposit in order to get the card to use on your everyday purchases. Over time your card service company can increase your spending levels based on your cash deposits. As you continue to adhere to the limits of your secured card, you should see an improvement in your credit score and the interest rate you qualify for. Make sure that when you are making purchases on your secured card that you only buy what you know you can pay off. Also, try leaving a small balance on the card that you did not spend. Using this strategy to rebuild your credit, can possibly put you in a position to get lower mortgage interest rates after bankruptcy. For more detailed credit tips go here.

    Check your credit file for errors after your discharge
    Keeping an eye on your credit score after bankruptcy is essential. You want to make sure that there was nothing left on your record that is still affecting your credit negatively. Signing up for a credit monitoring service can help keep your score top of mind. Having visibility of your credit score can also help you know when you might be ready to take out a home loan or purchase a car.

    Contact an experienced Mortgage Consultant

    An experienced Mortgage Consultant can save you time and energy in your journey to a new home or a better mortgage. Here are some of the ways we can help:

    A detailed and thorough analysis of your credit report highlighting items that are both positively and negatively affecting your score. We also review the report for inaccuracies that are common with our clients that have had a bankruptcy.
    We review your goals and try to find options that fit what you are looking for instead of treating you like a number.
    We have made over a 1,000 loans to clients with a past bankruptcy and have geared all our products and efforts at provide the best products and service for you.
    Published (April 18, 2019)
    Author Peoples Bank Mortgage

    Posted in blogTagged bankruptcy, bankruptcy after mortgage, chapter 13 bankruptcy, chapter 7 bankruptcy, chapter 7 bankruptcy mortgage, credit card debt, home loan after bankruptcy, how long until I can get a mortgage, mortgage after chapter 7, secur

    Joel Lobb
    Mortgage Loan Officer
    Individual NMLS ID #57916

    American Mortgage Solutions, Inc.
    10602 Timberwood Circle
    Louisville, KY 40223
    Company NMLS ID #1364

    click here for directions to our office

    Text/call: 502-905-3708
    fax: 502-327-9119
    email: kentuckyloan@gmail.com

    https://www.mylouisvillekentuckymortgage.com/

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