![]() VA lenders are typically looking for a credit score of at least 620, and that kind of decrease knocks many borrowers out of qualifying range. You’ll generally need a steady income and a desire to make up missed payments on things like a mortgage or car loan.Ĭonsumers who file for bankruptcy protection can see their credit score drop anywhere from 130 to 240 points, according to credit scoring firm FICO. Consumers propose a repayment plan that’s typically completed in three to five years. This is typically a path for people with lower to middle incomes and minimal assets.Ĭhapter 13 bankruptcy focuses on repayment of debt. ![]() Consumers can also erase unsecured debts like credit cards and medical bills. The two common forms of consumer bankruptcy are Chapter 7 and Chapter 13.Ĭhapter 7 bankruptcy involves the liquidation of assets to repay debt. But prospective borrowers who focus on repairing their credit can still look to tap into this historic no-down payment program. They can damage your credit score and delay your homebuying time line. To be sure, a bankruptcy or foreclosure complicates the picture.
0 Comments
Leave a Reply. |