Bankruptcy & Foreclosure
A bankruptcy or foreclosure filing delivers a devastating blow to your credit score, but it doesn’t mean you have to wait 10 years before you can qualify for a mortgage. Many consumers who have filed for bankruptcy have been able to obtain a mortgage in as little as 2 years from the discharge and 3 years from the sheriff’s sale date in the case of a foreclosure. When it comes time to buy a home, mortgage lenders are more interested in your recovery — what you’ve done since your filing. It won’t happen over night, but here are some tips and things to keep in mind when you inquire about a mortgage with a tarnished credit past.
Give explanations
No mortgage lender is going to ignore the fact that you’ve filed bankruptcy and he or she will likely want to know the cause of the filing. Your lender will be particularly interested in whether the same situation could happen again. Your chances of being qualified are much better if your bankruptcy was caused by a single event such as a loss of employment or a death in the family, than if it was the result of “just spending too much.” If the bankruptcy resulted from a single event, it is important to show your lender paperwork describing the incident, such as the layoff notice or death certificate. You may also want to bring in court documents to indicate when the bankruptcy was filed.
Demonstrate good money habits now
Many people who file bankruptcy swear off credit altogether, however, it is important to re-establish your credit rating. Get a secured credit card or take on some sort of loan — furniture, a car or a major appliance — to demonstrate that you are able to pay your bills on time. Make sure you are making other payments (utility bills, cell phone, etc.) on time as well. You won’t turn things around in a year but your credit score will improve over time.
Dispute any credit report errors
There’s no need to add to your troubled credit history with errors on your credit report. Get a copy of your credit report from each of the three major credit reporting agencies: annualcreditreport.com
Save your money
Lenders may be more willing to loan you money if you’ve saved up a considerable amount of money for a down payment. Showing that you have the ability to save money is huge!
Latest Blog Post
Conventional vs USDA Loan Michigan: Your 2026 Mortgage Flight Plan
The “obvious” choice for your mortgage might actually be the most expensive path if you don’t account for the unique terrain of the West Michigan housing market. While you might assume a massive down payment is the only way to avoid financial turbulence, comparing a Conventional vs USDA Loan Michigan reveals that the right flight plan often involves much less upfront cash than expected.
We understand that staring at a map of geographic eligibility or weighing monthly mortgage insurance costs can feel like flying through heavy fog. It’s frustrating when you’re ready to move but feel grounded by confusing requirements. This guide will help you compare these options with the precision of a seasoned navigator. You’ll learn how to identify if your dream neighborhood is USDA-eligible, how the 2026 loan limit of $832,750 impacts your Conventional path, and how the $119,850 income limit affects your USDA eligibility. By the end of this flight plan, you’ll have the expert coordinates needed to choose a loan that offers maximum lift for your West Michigan home journey.
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