Second Mortgage After Bankruptcy
Requesting a second mortgage after bankruptcy below market rates
Everyone feels anxiety when applying for loans and mortgages after discharge. In reality, obtaining a second mortgage after bankruptcy, for below market rates, is fairly easy when paying a substantial percentage down. If offering 30% down, the lowest market rates are available in connection with low documentation applications. If paying 20% down, still, no premium for mortgage insurance is required and most lenders welcome your application and usually extend an offer except in compromised circumstances. If expecting to pay 0% to 10% down after discharge, expect difficulty with approval.
Rebuilding credit after discharge
For several years after the final order, most people experience a degree of discrimination. Loan applications, insurance premiums, and job applications tend to be the most problematic. Nevertheless, obtaining a mortgage is perhaps the single greatest factor in improving credit. With a perfect record of timely payments, credit scores improve quickly. Most debtors who receive a discharge and mortgage approval report better credit after two to three years than during the months and years leading up to the filing date.