Bankruptcy Loans

Most people probably assume that obtaining a mortgage to purchase a home, refinance or to consolidate debt after a bankruptcy is out of the question.

At CalTex Funding, we pride ourselves on offering loan programs that require little or no time after the discharge of a bankruptcy. To speed up the road to recovery after a bankruptcy, here are a few tips. First, continue timely paying on items such as your home and cars that were not discharged in the bankruptcy. Having at least two to three credit items you are paying on-time will help. Second, limit the amount of other debts such as credit cards or bank loans. Too much debt will make it more difficult to qualify for a loan, particularly revolving credit accounts such as credit cards.

Your debt-to-income ratio is one part of the puzzle we will look at in determining your ability to repay a mortgage. Another important aspect is providing all necessary documents in a timely manner to your loan consultant. Items such as paystubs and tax returns are generally needed in order to establish your income and show the ability exists to repay the loan. Information on your credit report needs to be checked for accuracy. Items that you feel are inaccurate need to be disputed in writing with the three major credit repositories. (Equifax, Experian and Trans Union). This may take persistence to ensure the items are removed appropriately. The removal of this inaccurate information will help establish a more favorable debt-to-income ratio and make the process of qualifying for a loan easier.

Finally, if you are unable to qualify for a loan initially, do not despair. Sometimes this process requires a little patience. Follow the tips mentioned earlier and more options are usually available 6 months to a year after the bankruptcy discharge. Your professional Loan Consultant can help guide you through this process.

Chapter 7:

• 96.5% financing is available as little as two years after a Chapter 7 discharge or dismissal with a credit score above 620.
• VA loans are available as little as two years after a Chapter 7 discharge or dismissal with credit scores above 620
• FHA loans are available as little as two years after a Chapter 7 discharge or dismissal with credit scores above 620.
• FHA refinances are available as little as one day after a Chapter 7 bankruptcy discharge or dismissal.

Chapter 13:

• VA loans are available if you have been in a Chapter 13 and paying it on time for at least 12 months with credit scores above 620.
• FHA loans are available if you have been in a Chapter 13 and paying it on time for at least 12 months with credit scores above 620.