For many Oklahomans, filing for bankruptcy feels like setting yourself up for ten years of financial probation, since that is how long a bankruptcy filing can remain on your credit report. The good news is though, mortgage borrowers could qualify for a home loan in as little as one year after filing a Chapter 7 or Chapter 13 bankruptcy in Oklahoma. If you are considering filing for bankruptcy in Oklahoma, but you are concerned about being eligible to apply for a mortgage loan afterward, contact our experienced bankruptcy attorneys at Oklahoma Legal Center to discuss your options. When it comes to bankruptcy filings, enlisting the help of an Oklahoma lawyer who specializes in bankruptcies is critical, since a regular attorney may not have the experience or knowledge necessary to provide you with the state-specific information and assistance you need.
Applying for a Post-Bankruptcy Home Loan in OK
According to Julie Flatland, vice president of credit in the mortgage lending division of Carrington Mortgage Services in California, “If you filed for Chapter 7 bankruptcy, which means you discharged all your debt, you are eligible to apply for a mortgage in two years for an FHA or VA loan, and in four years for a conventional loan.” On the other hand, if you filed for Chapter 13 bankruptcy, Flatland says, “you can be eligible in one year for an FHA or VA loan, and in two years for conventional financing.” In some cases, a lender may even make an exception and approve a post-bankruptcy mortgage loan earlier than the industry standard, if extenuating circumstances – such as unemployment by the primary wage-earner – apply. One of the most important things to consider when applying for a home loan after filing bankruptcy though, is that lenders will certainly scrutinize your credit report to ensure that you are paying your bills on time and that you haven’t taken on too much new debt.
Bankruptcy Lawyers for Chapter 7 or 13 OK Bankruptcy
“Consumers seeking a mortgage loan after filing for a Chapter 7 or 13 bankruptcy should ensure all bills are current and payments are made on time, as this will help to reestablish strong new credit,” says Susan Fitzpatrick, director of communications at GMAC Mortgage in Pennsylvania. A bankruptcy will certainly lower your credit score initially, but how much varies based on your credit score and history prior to the bankruptcy filing. Fortunately, borrowers can be approved for FHA and VA loans with credit scores as low as 620 and 640, while borrowers with a score of 740 or higher are typically eligible for conventional loans. If you are considering filing for bankruptcy in Oklahoma, or if you have questions about an Oklahoma bankruptcy filing, our skilled bankruptcy attorneys at Oklahoma Legal Center are standing by, ready to help. Contact our Oklahoma City law firm today for a free initial consultation.