Mortgage Approval After Bankruptcy - St. Louis and Kansas City MO

Mortgage Approval    Mortgage Approval After Bankruptcy

After Your


St. Louis, Kansas City

Springfield, Columbia

and Missouri



You Are Not Alone

I recall the feelings that ran through me when I felt compelled to file for a Chapter 7 bankruptcy, I felt as though I was an outcast and ashamed that I could not handle my obligations. For a very long time I barely admitted it to myself much less my friends.

Now I realize that I did not have a solid handle on my finances and it took a couple small set backs to put me into the position of bankruptcy. But, when I look back I see a life lesson that was provided to me and has been instilled well into the fabric of my personal life. I will not allow this to happen ever again. It is this exact lesson that Underwriters and Mortgage Lenders are looking for from borrowers when it comes to providing a mortgage approval for a home buyer after a bankruptcy.

As a Mortgage Lender I am in a very unique position to provide both experience and knowledge in help my clients when they come to me for help in the purchase of a new home or the refinance of thier current house after a bankruptcy.




For the sake of brevity I will not get into all the exact rules for every mortgage program, I do at my website, please visit AFTER BANKRUPTCY here I provide what you need to get you approved.

Every mortgage program has specific time periods that you must wait after the discharge of your bankruptcy before you get started. Though most of the programs have exceptions to those wait guidelines, for instance the wait period for FHA is normally 2 years, but there is an exception called Back to Work that allows for only a 12 month wait period.


Something that many Lenders fail on is that after a Chapter 13 bankruptcy has been discharged it is possible to be approved for a FHA mortgage after only 12 months! BUT! You can actually get approved for a FHA mortgage while you are still in the repayment period of your Chapter 13! If you have made at least 12 months of on time payments and if your Trustee agrees you are eligible for a FHA mortgage!


The Underwriters will be looking for validation that you have learned from your bankruptcy. They will want to see that if you have current credit accounts that you are making your payments on time. This is important, to re-establish credit after your bankruptcy and especially with a credit card or two.




Applying for and getting approved a mortgage application after a Chapter 7 or Chapter 13 bankruptcy requires a stronger than normal application. To strengthen your application requires COMPENSATING FACTORS. Click on the link for a long list of items that you probably already can bring to your application, here are a couple that are important.....


Housing payment shock, you should not have a large increase in what you are paying currently for housing compared to your new house payment.


12 months of on time housing payment, this is an absolute must. There are exceptions if you are living somewhere rent free.


Keep your total debt to income ratio at or below the recommended guidelines of the mortgage program.




When I was an Underwriter we were told that a bankruptcy should be seen as the borrower recognizing that they had a problem with thier current financial situation and the method of solving that problem was bankruptcy. Now, let's see that the borrower has learned from that life lesson and they are practicing what they learned.


It takes a mortgage lender that adhers to the guidelines of the mortgage programs and don't have overlays that create roadblocks to your approval. It takes a mortgage loan officer that is willing and able to take on your special situation, don't settle!


If you have questions please feel free to visit my website, or contact me.

Bob Rutledge Mortgage Loan Officer

Bob Rutledge USA Mortgage

Comment balloon 1 commentBob Rutledge • April 22 2016 06:58AM
Mortgage Approval After Bankruptcy - St. Louis and Kansas City MO
Mortgage Approval After Your Bankruptcy St. Louis, Kansas City Springfield, Columbia and Missouri You Are Not Alone I recall the feelings that ran through me when I felt compelled to file for a Chapter 7 bankruptcy, I felt as though I was an… more
Bad or Poor Credit? The Secret to a Mortgage Approval
Getting a mortgage approval for home buyers with credit scores that some would judge as POOR or BAD is easier than what you have heard or would think! Did you know? That FHA allows for mortgage approval down to a 500 credit score? A 10%… more
St. Peters MO House for Sale - 4 bedrooms - Finished Basement - 3 Bath
4 BEDROOM HOUSE FOR SALE IN ST. PETERS MO FINISHED LOWER LEVEL AND 3 FULL BATHS DOWN PAYMENT ASSISTANCE AVAILABLE This wonderfully large home at 3 Sherri Lane in St. Peters MO 63376 can be found in the Brookmount… more
HARP 2 Refinance - Help for Underwater Mortgages in St. Louis MO
The New HARP 2. 0 Refinance Help for Underwater Mortgages for Homeowners in the St. Louis MO and St. Charles MO area! The HARP or Home Affordability Refinance Program has made a small but significant change that will help… more
First Time Home Buyer - Mortgages - Down Payment Assistance - Grants
First Time Home Buyer Programs and Down Payment Assistance for St. Louis and St. Charles As a Mortgage Loan Officer for nearly 20 years, I have always considered First Time Home Buyers my number one niche. Mostly, I work… more
Experience- The KEY to closing a FHA 203k Renovation Loan in 45 days
The Key To Successfully Closing A FHA 203k Renovation Mortgage In 45 Days or Less is… EXPERIENCE! Yes, it is possible, regardless of your experiences in the past… more
FHA 203k - The Top Home Improvements That Pay You Back
The Top Home Improvements to Use with the FHA 203k Renovation Home Loan A Recent study released by HUD regarding the FHA 203k Renovation Mortgage Program stated that after all work was completed homes that utilized the… more
The #1 Best First Time Home Buyer Mortgage - St. Charles and St. Louis
What is the best first time home buyer mortgage? 'What mortgage programs are available for first time home buyers? ', I have been a mortgage lender in the St. Louis and St. Charles Mo… more
Writing a Sales Contract with FHA 203k Financing
HOW TO WRITE A SALES CONTRACT WITH FHA 203K FINANCING IN ST. LOUIS AND ST. CHARLES MO. This article is written by a Mortgage Loan Officer who has no experience writing real estate sales contract but has closed 100s of FHA… more
What Credit Score is Needed for a Mortgage - St. Charles or St. Louis
What Credit Score Do I Need To Qualify For A Mortgage? Looking for a new home? Wondering what it takes to qualify for a mortgage? Getting financing for a new home starts with your credit score. &… more