filed bankruptcy

Filed Bankruptcy? Bankruptcy is Okay with Our Loans!

Are you tired of being turned down for mortgage financing because you filed bankruptcy and don’t qualify for regular financing?

It’s a real hassle that many people suffer from, even though millions of people were forced to file BK during the pandemic because of the economic downturn.

What if you didn’t have to worry about it and could still get financing? Bankruptcy is okay with our loans – here’s how to get qualified.

Hard Money Loans Don’t Consider Bankruptcies

The problem with traditional loans is they focus on your credit history. If you filed BK, then you’re going to have a less than good credit history. This means you’ll have a hard time getting financed.

Hard money lenders don’t look at your credit. If they do, they only look at certain factors, certainly not focusing on the fact that you had financial issues in the past. If they can determine that you can afford the loan now and the home has plenty of collateral – the BK won’t matter in their eyes.

Have Other Good Qualifying Factors

There are other good qualifying factors you can have that offset the risk that filing bankruptcy causes.

Like we said, a bankruptcy is a snapshot of your past financial life. It doesn’t mean you’re destined to have financial trouble forever. In fact, if you filed BK, you likely got a fresh start and if you did things right, you can more than afford a new mortgage and hard money lenders are more than willing to offer it.

If you want to prove the point that you’re a good borrower, consider having some or all of the following:

  • A large down payment – Investing your own money into the home is the key to getting approved. The more of your own money you have at stake, the more likely you are to make your payments.
  • Few debts – The lower your debt ratio is, the easier it is for you to afford your mortgage payment. Hard money lenders don’t have a maximum DTI requirement, but the lower your DTI is the easier it is to get approved.
  • Collateral in the home – The true key to approval is collateral. If there’s enough value in the home either as-is or after you repair it if you buy a fixer upper, your chances of getting approved even with a BK are high. Lenders just need to know they have something they can liquidate and pay themselves back if you default.

Final Thoughts

Don’t let having a bankruptcy in your past stop you from getting a loan. Bankruptcy is okay with our loans because we work with lenders who focus on collateral versus your credit history.

Work with one of our professionals at Save Financial to see what options you have. You might have more than you realize and even if you need a hard money loan, we offer some of the most competitive rates and terms to make sure your financial needs are met.

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