A daunting task for many former bankruptcy debtors is buying a home. But it need not be and is far from impossible. Debtors who exit bankruptcy with better spending and saving habits should be able to find lenders willing to make a mortgage loan at reasonable, competitive rates a reasonably short time after their bankruptcy case is closed.

The Morrison Law Group recognizes that buying a home or even refinancing an existing mortgage is a primary goal for many clients after filing a Chapter 13 bankruptcy case. Some banks and mortgage companies offer mortgages as soon as one day after a completed Chapter 13 Bankruptcy plan. Many also offer mortgage loans during the pendency of a case, while Chapter 13 plan payments are ongoing.

On the other hand, obtaining a conventional loan may take a little time. A conventional loan is any loan offered by a bank or non-bank lender that is not backed by a third-party outside agency, such as the FHA, VA, or USDA. Since such loans are not secured against default by a third party, they represent the highest possible risk to lenders.

Thus, conventional loans tend to have the strictest qualification requirements, especially those related to credit score and down payment. These conventional loans will usually have the longest seasoning requirement for bankruptcy discharges, requiring applicants to wait up to four years after bankruptcy to qualify for a loan.

In this situation, it is important to reorganize finances and establish a sound budget. Grow savings, organize your documentation, and shop around for the best deal. You may be surprised at what you might find.

Theron Morrison cares about protecting your rights. Talk to the Morrison Law Group about your Chapter 7 or Chapter 13 bankruptcy options. Call 801.456.9933 today to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.