Hitting a bankruptcy after not paying debts on time can lead you to financial instability. Those who are stuck with a bankruptcy issue, are typically deferred from taking loans from mortgages or other platforms for about 2 to 3 years, which can be struggling to handle such situations. Thus, you may ask what are the best mortgage companies that deal with bankruptcies?
Most of us assume that if you get filed with bankruptcies you can not take loans from mortgages for a couple of years until it is discharged. A few non-prime or subprime lenders come with mortgage loan programs without that long waiting period. Getting qualified for a mortgage loan after emerging from a recent bankruptcy may seem unprecedented.
However, with the right mortgage companies that deal with bankruptcies, you can get out of the turmoil with breathing space. Let’s materialize with the companies that can lower your pressure when you’re in the hot water!
Recommended 3 Best Mortgage Companies That Deal With Bankruptcies
We have researched thoroughly and enlisted the 10 best non-prime mortgage companies that deal with bankruptcies. Here, we are providing a gist of possibly the top 3 mortgage companies that will help you get away from the hassles of bankruptcy or debt.
| Mortgage Companies | Key Takeaways |
| Lendingtree Mortgage | One of the country’s leading companies that deal with five loan providers, and provides complete comprehensive loans without any service charge. |
| Citadel Servicing | Provides non-prime mortgage loans for bankrupt consumers in more than 38 states with a 90% LTV rate, and accepts lower credit scores of 500. |
| Angel Oak Mortgage | Approves minimum credit scores of 600 and offers comprehensive non-QM loan for investors, just missed & self-employed borrowers with up to 95% LTV |
- 10 Best Mortgage Companies That Deal With Bankruptcies 2023
- FAQ About Mortgage Companies That Deal With Bankruptcies
- Can anyone get a mortgage loan after contemporary insolvency?
- Are bankrupt people allowed to get USDA Loan After Bankruptcy?
- Is there any lender that works for bankruptcies?
- Can I get eligible for loans with a lower credit score?
- Is it allowed to get a mortgage without credit checks or no down payments?
- Final Verdict
10 Best Mortgage Companies That Deal With Bankruptcies 2023
Several mortgage companies and financing institutions offer mortgage loans for individuals who have stuck with bankruptcies. But, all companies are not the same in terms of providing services, terms & conditions, and waiting period. Therefore, we have consisted of a list of the best mortgage companies that deal with bankruptcies and provide top-notch services.
1. Lendingtree Mortgage
LendingTree is a leading mortgage and loan providing platform that allows connecting potential buyers to get flexible loans and financial benefits.
The lending tree includes purchasing loan services like FHA, Veterans Affairs, conforming prime, non-prime, and other housing loan services.
If you have been struck with bankruptcy and are struggling to deal with the debts, you can go for non-QM or non-prime mortgage loans from LendingTree.
Features
- Connects consumers or borrowers to more than five mortgage loan service providers
- If you use the services and get loans from other providers they don’t charge any servicing fees
- Provides multiple online offers via sites, or apps and saves time of the users
- Negotiates with the lending or mortgage loan providers for users that want lower rates
- Comes with lower down payments and prohibits risky features for each buyer
Mortgage services from LendingTree also include Home Equity loans, basic mortgage loans, HELOC or Home Equity Lines of Credit, and Reverse Mortgages.
LendingTree mainly connects the borrower with the lender companies and assists in getting a loan that the user wants. One of the best parts of LendingTree is, they provide a list of mortgage loan-providing companies by matching with the requirements and conditions of the user.
LendingTree is one of the biggest online loan and finance service providing platforms that serve users from five different providers. Therefore, users with different requirements, situations, and circumstances can get mortgage companies that deal with chapter 7 bankruptcies services from a suitable provider. They offer versatile services as it is a government-backed and assisted site.
2. Citadel Servicing
Citadel is one of the prominent non-prime or non-QM loan service providers in the US which comes with the services to deal with users who are suffering from bankruptcy issues.
Citadel comes with a wide range of tailored Non-QM Mortgage Products which include fixed and adjustable-rate mortgages (ARMs) for residential properties on both an owner-occupied and non-owned occupied basis.
Features
- Provides both home purchase loans and mortgage loans for financing without non-prime bankruptcies
- Includes the highest percentage of LTV value of up to 90% from the total money
- Charges a low down payment of just 10% for providing loans to the bankrupt users
- Accepts participants with lower credit scores, starting from as little as 500
- Mortgage loan services are available in more than 38 states of the US
They provide risk-free loans from mortgage companies which also take lower interest rates from bankrupt users. The non-Qm mortgage loans from Citadel include residential & non-residential commercial and personal properties across the citizens of America. The lower the credit score is accepted, the less you have to put down.
With Citadel Servicing you can get a quote from a mortgage lender who will guide you thoroughly for getting mortgage loans even after hitting chapter 7 bankruptcies.
Their non qualified mortgage lenders‘ loan program accepts lower credit scores. Citadel also offers Maggi Plus ALT-A loans, which come with competitive interest rates and requires bank reports for verifying income.
3. Angel Oak Mortgage
Angel OAK is a renowned mortgage loan provider platform that comes with loan contracts for a fixed 30 year period. The programs of Angel OAK are- Bank Statement Mortgage, 1099 Income Loan, Investor Cash Flow, Platinum Jumbo, Asset Qualifier, Portfolio Select, Agency Mortgage, and ITIN Mortgage Loan. All their programs start with an eligible credit score requirement of just 600.
They are a wholesale mortgage lender that specializes in non-QM loan programs for brokers and borrowers that are hit by bankruptcy issues.
Features
- All programs come with a fixed rate for a contract maximum of 30 years
- For foreclosure, bankruptcy, short sale, or deed in lieu, programs needs two to four years of seasoning
- Offers a maximum LTV value of 95 percent for Just missed borrowers with a credit score of a minimum of 660
- Provides a minimum of 250 thousand dollars and a maximum of 3 million dollars as mortgage loans
- Requires no personal income detail or any employment information for enrollment into the loans
A few non-QM loans from Angel OAK provide a higher LTV value of up to 95%, without any MI. All their non-QM loans come with no ARMs and they are great for investors, just missed & self-employed borrowers and foreigners as well.
If you have been hit with bankruptcy and your credit scores are lower, then you can undoubtedly switch to Angel OAK non-prime loans. After getting the approval for their loans you can get mortgage loans even after 1 day of getting reported with bankruptcies. They offer mortgage loans for bankrupt or low credit users in more than 36 states of the US.
4. Credit Glory Mortgage
Getting loans with a bankruptcy report may seem pretty much unimaginable but it is not impossible. With Credit Glory, you can easily get qualified for a Mortgage Loan even after heating a bankruptcy.
But you may be astonished to know that if you sign up for a bankruptcy mortgage loan your credit score may drop by more than 200 points.
Features
- Loans are available for lower payments of just 70 dollars, and they require an affordable setup fee of 199 dollars
- Includes free evaluation and a stable guarantee or warranty of the products
- Comes with a straightforward pricing category and adds one monthly pricing fee solutions
- Services are affordable and provide excellent customer support
- Provides free credit consultation and best suits victims of identity theft
Credit Glory comes with multiple mortgage loan alternatives for bankruptcy borrowers and you can pick one that goes well with your requirements. They have a qualitative rating from the accredited BBB platform with an A+ rating. The mortgage loan services from Credit Glory come with an industry-leading guarantee of up to 90 days.
Credit Glory is an expert in repairing credits for those who are struggling with bankruptcy reports. The foremost motto of Credit Glory is to aid consumers in qualifying for lenders and insurers with a low credit score.
This will help the consumers to reach their financial goals and enhance their chances of getting stable employment. Yet, Credit Glory doesn’t monitor credit and buyers are obliged to pull their own reports.
5. Rocket Banks Mortgage
Rocket Banks mortgage is a loan and finance provider service from Quicken Loans. From the rankings of J.D. Power, it is ranked as one of the best lenders in the United States because of its quality service, seamless process, and consistent online application.
Their leading customer service, high-quality online site, and convenient mobile applications make it a platform tough to ignore.
Features
- Comes with low down payment options as little as 0% to 3.5%
- Requires a minimum credit approval score ranging from 580 to 620
- Includes programs with customizable (8 years to 30 years), and fixed 10-year terms
- Offers versatile loans from four separate providers- VA, FHA, conventional, and Jumbo
- Services loans to bankrupt consumers with up to 90-day rate lock system
They come with a wide section of home loans and mortgage loans. Rocket Mortgage offers a comprehensive mobile-based digital loan and finance experience through its site and mobile application.
If you are a buyer or borrower who prefers online platforms for loan management and financing, then Rocket Mortgage is the best option for you.
With the industry benchmark mobile application and simplistic eligibility requirements, it makes granting for loans a cinch. According to the surveys, Rocket Mortgage has been consistent in holding their top positions for 11 years at a stance.
However, amongst the bad sides to mention, it does not have any physical branches. The low down payment loan eligibility criteria are also limited. They don’t offer USDA and home equity loans.
6. Midland Mortgage Corporation
Despite getting crippled for bankruptcies, you can apply for mortgage loans through Midland Mortgage Corporation.
They appear with mortgage loans which are friendly for bankrupt consumers to help them refinance a new home straight after getting filed for bankruptcy. They come with both fixed and customizable loan programs for meeting the demands of individuals.
Features
- Conventional Fixed loans come with 30, 25, 20, 15 & 10 Year terms and 5 to 7 years balloons
- The minimum down payment can be as little as 3% to 5% of the sales price depending upon the type of loan program
- Comes with several loans which include almost 100% financing service available
- Approves instantly after applications and some loans may take two to four weeks for approvals based on the requirements
- Requires a flexible and easily manageable lower credit score of just 620 for typical loan approvals
Consumers who have been reported with chapter 7 bankruptcy have to wait for more than those who have got chapter 13 reporting. For instance, in chapter 7 bankruptcy users need to wait about 2 years, whereas in chapter 13 consumers need to wait 1 year.
There are a variety of loans suitable for any person’s situation, whether it be the owner-occupied, investment property, second homes, problem credit, etc.
For VA or FHA loans, you may have to wait for about three years in terms of conventional lenders. But with Midland Mortgage Corporation you don’t have to suffer from waiting period issues, you can get loans the next day if you qualify.
A few of their loan programs are- Conventional Fixed, Conventional ARM, Construction Perm, FHA VA Fixed ARM 203K, and Builder Speculative Loans.
7. People Bank Mortgages
People bank mortgages service offers mortgage loans for chapter 7, chapter 11, and chapter 13 bankruptcies for the reported consumers. From them, you can also get refinancing or purchasing utilities of a new house even after getting reported by bankruptcy.
When you go for buying loans to purchase your house or pay your debts, their support team will guide you through the right way of proceeding.
Features
- Provides home loans with lower monthly payments affordable for bankrupt users
- Cash-out refinance options are available with shorter home loan terms
- You can pay off your bankruptcy plan sooner with lower interest rates
- For the qualified home purchases, you can get low down payment options as well
- They offer the ability to skip the monthly refinance payments for 1 to 2 months
First of all, you need to consult with their agents for getting a loan for your house purchase or debt payments. Then they will review your credit scores and histories before they approve you.
People’s Bank usually runs 3 in 1 credit report analysis for approving a user. In typical conditions when underwriters provide loans with conditions, their consultants help you by removing the conditions.
If you have a dream of buying a house after hitting bankruptcy reports, you can head on to People Bank Mortgages since it is one of the best mortgage companies that deal with bankruptcies. They launch loan programs tailored to meet the user’s needs.
Where other providers offer mortgage loans after 2 years of bankruptcy, People Banks offers loans as soon as the day after bankruptcy release. People Bank mortgages help users by staying in touch with annual reviews and updates about mortgage trends individually.
8. Silver Leaf Mortgage
With an A+ rating from the BBB bureaus, Silver Leaf Mortgage comes with an award-winning mortgage loan for bankrupt consumers. Silver Leaf mortgage offers several types of loans for building homes and improving the extent of your existing business.
If you want to adopt their mortgage after bankruptcy services, you must follow some of their rules and conditions.
Features
- They approve with any user with a minimum FICO score of 500, regardless of credit histories
- Based on the bankruptcy issuing reports they provide loans with a waiting period of 24 to 48 months
- For the chapter 7 FHA mortgage loans, they charge lower down payments of just 3.5%
- Comes with one of the best loan and financing services for reverse mortgage services
- Offers versatile loans from four separate providers like VA, FHA, conventional, and Jumbo Premium
They help home buyers with reverse mortgage loans without any down payments who are over 62 and hit by bankruptcy. Silver Leaf comes with both chapter 7 and chapter 13 bankruptcy loans for buying a home.
They also have mortgage insurances with upfront fees and ongoing MI policies. With Silver Leaf mortgage loans you may need to have a lower FICO score for getting approved.
After getting the approval for their loans you can get mortgage loans even after 1 day of getting reported with bankruptcies. They help consumers to get discharged from both chapter 7 & 13 bankruptcy reports.
If you put less than 20% down on a conventional loan, you will be required to purchase private mortgage insurance (PMI) which protects the lender in the event that payments are not made.
9. Golden OAK Lending
You may ask can you get a mortgage loan if you have filed for bankruptcy recently? Yes, you can get a house by buying a mortgage loan from Golden OAK Lending one day after you get foreclosure from the bankruptcy report.
Golden OAK offers a wide section of mortgage loans like- conventional loans, FHA loans, Cash Out loans, VA loans, Jumbo Loans, and Home Financing.
Features
- Requires no personal income detail or any employment information for enrollment into the loans for foreclosure, bankruptcy, short sale, or deed in lieu, programs need two to four years of seasoning
- Offers a maximum LTV value of 95 percent for Just missed borrowers with a credit score of a minimum of 660
- Provides a minimum of 250 thousand dollars and a maximum of 3 million dollars as mortgage loans
- Comes with several loans which include almost 100% financing service available
If you have been hit by a chapter 7 bankruptcy, you may have to wait for more than two years to get a loan. But, for the chapter 13 bankruptcies, you may have to anticipate for about three to five years.
You can buy a house during that time if you obtain an FHA loan and meet certain conditions, including court approval and proof that you’ve paid 12 months of plan payments.
First, you need to consult with their expert agents before you head ok for any loan program purchases. Always go for a repayment plan which may help you to reach financial goals faster.
If you are hit by bankruptcy without any fault of your own, you may get mortgage loans quicker than others. Just demonstrate that filling was beyond your control and show that you are consistent in your finances before the bankruptcy.
10. The Mortgage Hut
The mortgage hut is one of the leading mortgage companies that deal with bankruptcies.
Applying for a mortgage loan and getting it within the next day after bankruptcy discharge may seem overwhelming, but it is possible with Mortgage Hut.
Always check your credit scores before applying, and don’t let the easily fixable problems prevent you from getting a mortgage for your dreamt asset.
Features
- Offers a maximum LTV value of 95 percent for Just missed borrowers with a credit score requirement
- Based on the bankruptcy issuing reports they provide loans with a waiting period of 24 to 48 months
- Requires a flexible and easily manageable lower credit score of just 620 for typical loan approvals
- Provides multiple online offers via sites, or apps and saves time for the users
- Negotiates with the lending or mortgage loan providers for users that want lower rates
First of all, check your credit score frequently prior to applying for a mortgage loan. Afterward, set a quota for reviewing your eligibility by credit histories and FICO credit scores.
Work with care for rebuilding your credit scores, and increasing your deposit amounts. Close all the dormant credit accounts that you no longer use for betterment in your mortgage loan financing.
They help consumers to get discharged from both chapter 7 & 13 bankruptcy reports. Still, it is essential to note that their measures will be strict, you will require a sizable deposit, and the rates and fees will be higher than those for other mortgage products. The low down payment loan eligibility criteria are also slightly restricted. They don’t offer USDA and home equity loans.
Fundamental Facts About Bankruptcy Reports
Bankruptcy is a state of a financial issue when a user or consumer becomes unable to pay his or her debts or loans of the leased property or any other stuff.
It can happen for any individual, company, or institution to get bankrupt. But getting hit by a bankruptcy report means you cannot take any mortgage loans or any finances for your home, or any other property purchases.
In typical cases, bankrupt consumers may have to wait from 1 to five years before applying for a mortgage loan, and this is the matter where everyone is worried about bankruptcy.
Bankruptcy is divided into almost seven chapters according to the Court legislation. But here we will look upon the chapter 7 and chapter 13 bankruptcies.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is defined by a code liquidation, which means the sale of a debtor non-exempt asset and the distribution of the proceeds to creditors.
If you don’t have adequate credits to pay your debt on time, you can also switch to Chapter 7 bankruptcy. When you are considered to be in this category, you will need to sell any assets that haven’t been liquidated so far.
As a debtor, you need to consider other alternatives when you’re working for relief from chapter 7 bankruptcy. Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13.
The insolvency trustee fills and swaps the nonexempt properties and utilizes the dividends of such properties to pay holders of outlays in consonance with the conditions of the Bankruptcy Code.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a category of insolvency for people who have a constant income and a decent history of paying their bills. This kind of bankruptcy enables you to maintain important taxpayers such as your house but restricts admirers from handling the debt in Chapter 13 if you scratch bankruptcies. A chapter 13 bankruptcy is also called a wage earner’s plan.
It allows people with typical earnings to evolve a scheme to pay back all or a portion of their debts. Under chapter 13, debtors recommend a payment plan to create installments to creditors for 3-5 years.
This chapter of the Bankruptcy Code furnishes for adjustment of debts of a person with normal income. Chapter 13 allows a debtor to keep the property and pay debts over time.
FAQ About Mortgage Companies That Deal With Bankruptcies
Can anyone get a mortgage loan after contemporary insolvency?
Yes! You can apply for a mortgage loan after bankruptcy; even if it appears at a contemporary time. To take this mortgage loan, you should have a waiting period and abide by several rules and limitations that mortgage companies offer.
Are bankrupt people allowed to get USDA Loan After Bankruptcy?
People suffering from bankruptcy files may apply for USDA loans which come with similar conditions like FHA loans. For a mortgage loan after chapter 7 bankruptcy, you may need to wait for 2 years, and for chapter 13, you may need to wait about 1 year.
Is there any lender that works for bankruptcies?
There are several lenders available that work with bankruptcies. For instance- Alpine Mortgage Services, Pepper Money, Beacon Lending, Golden OAK Lending, Silver Leaf Mortgage, The Mortgage Hut, and many more works in this criteria.
Can I get eligible for loans with a lower credit score?
Yes, you can get approved for a mortgage loan with a low credit score, within just four simple checking procedures. They will go for a check of your financial assessment, the measure of obligation you convey contrasted with the pay you get, how much cash you’re putting down, and your work history.
Is it allowed to get a mortgage without credit checks or no down payments?
In such circumstances, most of the time, you can not take out a mortgage after insolvency without a credit check or down payment procedure. You should provide a 3 to 4 percent down payment and acquire a mortgage loan infrequent periods.
Final Verdict
The significance of economic liberation is not unexplored; its importance is gradually increasing day by day. And bankruptcy is the decisive hostile against economic independence.
As mentioned above, numerous mortgage companies that deal with bankruptcies offer various benefits for a mortgage loan. Regardless, follow the directions and constraints to take a mortgage and appreciate it with a flexible APR rate.