How soon after Ch.7 Bankruptcy discharge can I apply for a home equity loan and get approved?

I was wondering how soon I could apply for a home equity loan and get approved. My Ch. 7 Bankruptcy got discharged in June 2009 so it has been a year. I’m just wondering because I’m sure the laws keep changing. I was told the day after it gets discharged and then I was told two years after discharge. So, someone who actually knows please help?

5 thoughts on “How soon after Ch.7 Bankruptcy discharge can I apply for a home equity loan and get approved?

  1. Most mortgage lenders will entertain the idea of approving an application from a person that was in foreclosure or a bankruptcy 1-2 years after the bankruptcy or foreclosure was filed,not when it was discharged.

    You would have to have rebuilt credit and the proper credit scores to get this mortgage approval.

    There are many things you should do, but the first thing you should do is contact a mortgage broker that does VA and FHA mortgage loans and get pre-approved. This is the first step. Once you have your pre-approval then contact a real estate agent to look at house based on what you are qualified to buy.

    You will need proof of income so have available pay stubs, w-2, bank statements and other items your mortgage broker will require.

    He will inform you of what is necessary once you contact him.

    This pre-approval will tell you the amount of house you are qualified to purchase as well as the interest rate, monthly mortgage payments and other necessary things you need to know about your mortgage.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

  2. In theory, the day after the discharge. In practice, a minimum of 2 years. In the current fiscal situation, 5 years.

  3. You have just been bombarded with so many people claiming to be mortgage bankers who is willing to lend you money.

    I’m sure you can find lenders who are willing to lend you the money right after you have been discharged in your bankruptcy case. But the truth of the matter is that most of those lenders do not really care about you financially, they just want to make money. So their offer might be outrageous and they will use the excuse that your credit is poor, blah blah blah.

    My suggestion is that you should have try to rebuild your credit for the past year, then look up some of the big mortgage banks, and see what they say. The worst thing that you can do is to get rejected but at least you know it is a reputable company.

  4. Generally it is recommended that you wait approximately 2 years from the date of discharge to apply for a home loan. This does not mean that you cannot get approved before this time, but they may require a larger down payment to compensate to the risk that you will default. Of course your ability to obtain a home equity loan depends significantly on your income and whether you can afford the monthly mortgage payments on the loan. Below is a good article that outlines some of this information.

  5. Credit after bankruptcy is possible! All you need to do is follow these simple steps!

    Most people who consider or follow through with bankruptcy are convinced they will never have good credit again. I’m not going to lie to you by telling you that your credit rating after bankruptcy will be stellar. It won’t be! However, by establishing credit after bankruptcy, you can rebuild your good credit. So smile, you can do it.

    Step One: Secured Credit Card
    Step Two: Make Sure Balances Show Zero on Credit Report
    Step Three: Manage Remain Credit

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