FHA loans usually require a 2-year waiting period after bankruptcy, while Fannie Mae and Freddie Mac loans require four years… if a bankruptcy was due to mitigating circumstances like being laid off from a job, a lender may look at them more favorably.
Queens, NY (PRWEB)
May 19, 2017
For many New Yorkers, filing for bankruptcy is a serious, emotional process. People and businesses that file for bankruptcy do so to take back control of their finances and get on the path to financial wellbeing. But sometimes the road after a bankruptcy can seem like a daunting one. Bruce Feinstein, Esq., a bankruptcy attorney in Queens, New York, has spent years working with clients on their plans to rebuild after bankruptcy. He recently spoke about the challenges and helpful plans one can take to get a loan after bankruptcy.
After a bankruptcy is discharged, an individual needs to take time to build his or her credit score. Rushing into getting a loan soon after bankruptcy can result in unfavorable loan terms, higher interest rates, or limited options, which can then draw people toward predatory online lenders, as explained in a previous April 30, 2017 PRWeb article by Mr. Feinstein. A Chapter 13 bankruptcy is typically removed from a person’s credit report after seven years, and a Chapter 7 bankruptcy will be scrubbed after 10 years. But there are steps to take towards better credit and better loan options in the meantime.
One fact to know about credit is that credit history plays a bigger part in getting a loan than a credit score. While both are related, a credit score is a number based on the analysis of a person’s credit files, and a credit history spans that person’s entire financial past. A good score may be…