Dealing With A Past Bankruptcy

Dated: 11/01/2018

Views: 214

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

Why Do Real Estate Agents Ask If Youre Preapproved

Have you ever walked into an open house, or called a real estate agent about a listing, and within minutes, they’re asking you if you are “pre-approved” for a mortgage?If you haven’t, then

Read More

US Median Home Value Up 8 Percent In 2018

Thanks to the inventory shortage, fierce competition, and a somewhat volatile stock market, the real estate industry experienced some pretty intense highs and lows in 2018. But for homeowners,

Read More

I Love Real Estate

We can’t help who we fall in love with, and even more frustratingly, who falls in love with us. It’s simply one of life’s mysteries. And we might not know exactly why we fell in love with real

Read More

Feb 1 2019 54031 1

All to often I hear that there's nothing to do around here. Get out and see the beauty of the surrounding area this springhttps://vacationidea.com/north-carolina/best-north-carolina-day-trips

Read More