Dealing With A Past Bankruptcy

Dated: 11/01/2018

Views: 86

Dealing with a Past Bankruptcy? You Can Still Buy A Home—And Sooner Than You Might Think


Image title


In the past 6 years, more than 5 million Americans have filed for bankruptcy. And while many people believe that filing for bankruptcy causes long-term financial ruin—and will keep them from ever being able to purchase a home—it turns out that might not be the case.

According toThe Cost of Bankruptcy, a recent study from Lending Tree, within a year, 43% of people with a bankruptcy on their record are able to get their credit score to 640 or higher, which is the credit level typically necessary to qualify for a mortgage. Within two years of filing bankruptcy, that number jumps to 65% and at five years, 75% of people who filed bankruptcy have a FICO score of 640 or above.

Now, if you have a bankruptcy on file and a credit score on the lower end of the qualifying spectrum, you’re likely to pay higher interest rates. But if you can get your score up, your bankruptcy is unlikely to have a major impact on your loan. According to the study, people with a credit score between 720 and 739 who applied for a mortgage three years after filing for bankruptcy were offered similar interest rates to those without a bankruptcy on their credit file.

Blog author image

Tricia Schult

As an agent I am here to Work With/For You. I take your trust seriously. I work hard to provide my clients with the most positive real estate experience possible. A vital part of today's real est....

Want to Advertise on this Site?

Latest Blog Posts

Dealing With A Past Bankruptcy

Dealing with a Past Bankruptcy? You Can Still Buy A Home—And Sooner Than You Might ThinkIn the past 6 years, more than 5 million Americans have filed for bankruptcy. And while many people

Read More

6 Reasons Why I Fell In Love With Real Estate

6 Reasons Why I Fell In Love With Real Estate1. The peopleYou have to enjoy working with people in order to be a successful real estate agent. Coworkers, clients, baristas who recognize you as you

Read More

Stage It First

Putting Your Home On The Market? Stage It First If you’re getting ready to put your home on the market, you might think all you need to do is get organized and show your home as.

Read More

Several Reasons Now Is The Time To Buy A House

Several Reasons Now is the Time to Buy a HouseAre you currently renting? Isyour lease coming up for renewal?Before you extend your lease for another year or two, why not consider exploring the

Read More