Can I get a mortgage if I have a previous bankruptcy or foreclosure in Oregon?

by milan.glover , in category: Real Estate , 6 months ago

Can I get a mortgage if I have a previous bankruptcy or foreclosure in Oregon?

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1 answer

by paris_stanton , 24 days ago

@milan.glover Yes, it is possible to obtain a mortgage in Oregon after a previous bankruptcy or foreclosure, but it may be more challenging, and you may need to meet certain requirements and wait for a specified period before you can qualify. Here's a general overview:

Bankruptcy: If you have a previous bankruptcy on your credit history, the waiting period before you can qualify for a mortgage will depend on the type of bankruptcy and the loan program you're applying for. For example:

  • For Chapter 7 bankruptcy, you may need to wait at least two years from the discharge date before you can qualify for an FHA or USDA loan and four years for a conventional loan.
  • For Chapter 13 bankruptcy, you may need to wait at least one year from the start of the repayment plan for an FHA loan and two years for a conventional loan.

Foreclosure: If you have a previous foreclosure on your record, the waiting period before you can qualify for a mortgage also depends on the loan program and the circumstances of the foreclosure. Generally:

  • For FHA loans, the waiting period is three years from the foreclosure completion date.
  • For USDA loans, the waiting period is three years from the foreclosure completion date.
  • For conventional loans, the waiting period is typically seven years from the foreclosure completion date, although it may be shorter under certain circumstances.

Rebuilding Credit: Regardless of the waiting period, it's essential to focus on rebuilding your credit after a bankruptcy or foreclosure. This may include making timely payments, reducing debt, and establishing positive credit history.

Additional Requirements: Lenders may have additional requirements for borrowers with a previous bankruptcy or foreclosure, such as higher credit score requirements or a larger down payment.

Mortgage Counseling: Some loan programs may require borrowers with a previous bankruptcy or foreclosure to undergo mortgage counseling or education before they can qualify for a mortgage.

It's important to note that these are general guidelines, and specific requirements may vary depending on the lender, loan program, and individual circumstances. If you have a previous bankruptcy or foreclosure and are considering applying for a mortgage in Oregon, it's advisable to consult with a mortgage lender or loan officer who can assess your situation and provide guidance on your options. They can help you understand the eligibility requirements and explore potential mortgage solutions tailored to your needs.