Requirements for Re-establishing Credit
After a bankruptcy, foreclosure, deed-in-lieu of foreclosure, preforeclosure sale, or charge-off of a mortgage account, the borrower’s credit will be considered re-established if all of the following are met:
The waiting period and the related additional requirements are met.
The loan meets the minimum credit score requirements based on the parameters of the loan and the established eligibility requirements.
The borrower has traditional credit as outlined in Section Traditional Credit History. Nontraditional credit or “thin files” are not acceptable.
Notes
When both a bankruptcy and foreclosure are disclosed on the loan application, or when both appear on the credit report, the underwriter may apply the bankruptcy waiting period if the underwriter obtains the appropriate documentation to verify that the mortgage loan in question was discharged in the bankruptcy. Otherwise, the greater of the applicable bankruptcy or foreclosure waiting period must be applied.
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