Chapter 7 is survivable. A new late payment isn’t

The bankruptcy usually isn’t what stops the loan. What happens after it is.

We’ve worked with borrowers who were 23 months into their FHA wait and did everything right, except one 30-day late payment on a credit card two months before they applied. They couldn’t close. Not because of the Chapter 7, but because of the late payment after it.

The waiting period is survivable. A new late payment during it can reset a lender’s confidence and push you past the minimum wait.

Here’s how to protect your timeline:

• Pay every account on time, every month. A $50 payment on time beats a $500 payment late.

• Keep card balances under 10% of the limit.

• Don’t open a burst of new accounts. Lenders read that as risk.

• Pull your credit reports at the 12-month mark, not just when you’re ready to apply. Errors on post-discharge accounts are common and slow to fix.

Your score matters as much as your clock. FHA often needs 580 or higher, and conventional usually needs 620.

Whether you’re 6 months out or 6 months from your 2-year mark, we’ll look at your actual file and tell you what to do between now and closing.

Ryan Miracle & Chris Beal, Ruoff Mortgage, Columbus. NMLS #497698