Generally speaking mortgages are underwritten using FICO (Fair Isaac and Co) scores unless the borrower’s credit history includes significant derogatory information. A bankruptcy is considered significant. A Chapter 13 bankruptcy will remain on your credit for seven years and a Chapter 7 bankruptcy for ten years.

However, know that the force of negative information on your credit report declines as it ages, but that alone won’t do any good unless you generate new positive information. Consequently the number of years since your discharge, the reason for your bankruptcy and re-establishing new debt, with on-time payments, are all taken into consideration when a lender is qualifying you for a home loan. The longer it’s been since your discharge, the better! Also, the lender and the type of loan requested play a part in any loan decision.

So, a high FICO score alone will not guarantee that you are a good credit risk for a home loan. Significant derogatory credit will have to be addressed and if the discharge is recent most lenders will not consider the credit history as acceptable.

When the time is right and you are ready to purchase a home, call us. We understand that anyone can get into financial difficulties and that every situation is different. Our Loan Consultants will guide you through the process and let you know what loan options are available.

I believe that for a small fee 2 bureaus will provide your score.