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Tuesday, May 13, 2008

How long after chapter 13 can I get a mortgage?

I was recently asked the question in the title by a former client.

There is no official time frame that a chapter 13 debtor has to wait to get a mortgage after a discharge in chapter 13 (or after a chapter 7), it will be up to the lenders to qualify the purchaser. Since the mortgage lenders are going thru some rough patches, (even bankruptcy themselves!) a borrower may have to put a greater down payment down, (10-20%) or may have a higher interest rate. I would say perhaps within 6 months to a year should be the average time table to get a mortgage, but I do stress that it is up to the lenders to qualify the borrower based on their current financial situation. Start looking now, talk to a few lenders to see what time frames they say, and what type of requirements they will have so you can start to prepare. Remember, there is no official time frame that you have to wait after a bankruptcy case.
Good Luck.
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