Qualifying for a USDA Mortgage with a Prior Bankruptcy

The USDA program is great option for individuals looking to get into a home for minimal out of pocket expenses.  Society Mortgagempany prides itself on being able to help people who may not be able to get financing at other locations.  It is our goal and mission to help as many people as possible obtain a loan through the USDA program.


With regards to individuals who have had a chapter 7 bankruptcy in the past, USDA loans are still an option.  There are certain guidelines that have to be met for qualifying purposes after a bankruptcy, and the following will give you a good idea of what we look for.

  • Typically at least 20 months from the discharge date of the bankruptcy
  • Rent or verifiable payment for current residence
  • Re-established credit lines
  • Solid payment history since the bankruptcy occurred ( no late payments )
  • Generally need to see a 620+ with regards to the credit score

Keep in mind chapter 13 bankruptcies are a bit different.  Technically you can still get into a new home while currently in a chapter 13 bankruptcy; however we need to see the same type of guidelines as listed above for the chapter 7 bankruptcies.  The most important aspect of qualifying after a chapter 13 is to have the solid payment history and overall score above 620.

If you have had a bankruptcy in the past and are looking to purchase a new home, please, give us a call and one of our sales representatives would be more than happy to take a look into this for you.

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