Question:

Can I get low fixed mortgage interest rates if I recently filed for bankruptcy?

Answer:

Bankruptcy stays on your credit report for 7 years in the least and does affect negatively the borrower credibility. However, low fixed mortgage interest rates are possible with some loan programs. Many people are in fact eligible for VA and FHA financing and credit score won't be an obstacle.

The lowest fixed mortgage interest rates are available for 15-year FRMs. The longer the term the higher the rates.

Also, even if bankruptcy is not desirable, there are mortgage loans that will only consider it if it is less than a year old. Even if most mortgage loan programs require at least 2 years since bankruptcy was filed, there are many others who will take into account only the most recent 12 months of your credit history.

However, if you are not a veteran and you have a recent bankruptcy low fixed mortgage loan interest rates will be possible only through FHA fixed rate loans. If your bankruptcy is less than 12 months old - you'd better wait for a while before you apply for a fixed rate mortgage. Fixed rate mortgages are more difficult to qualify anyways and you won't be possible to get low interest rates with a 5-month old bankruptcy on the report.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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