Hello Matt, and thank you for writing. Whether you can qualify for mainstream financing one year after a Chapter 7 bankruptcy depends on the reason for filing, and if your credit has recovered enough to make you eligible for financing.
Most programs have different rules depending on the cause of your bankruptcy.
Those who sought bankruptcy protection due to extenuating circumstances get shorter waiting periods, sometimes much shorter.
In general, extenuating circumstances are events that result in an unforeseeable, substantial, and lengthy reduction in income or an extreme increase in expenses.
Some examples are a loss of a job or hours due to company downsizing, prolonged strikes, death of a breadwinner, or medical bills not covered by insurance. Applicants must be able to document the cause.
So, what about divorce?
This is a common occurrence, and often a valid reason for bankruptcy, but lenders typically do not consider it an extenuating circumstance for qualification purposes.
Find out if you qualify and get answers in minutes. https://themortgagereports.com/ratequote