Home in LA 14 Months After Bankruptcy

In 2021 Kevin's events company collapsed. COVID wiped out two years of bookings. He tried to hold on, burned through savings, maxed out credit cards keeping staff paid. Eventually he filed Chapter 7.

Discharged in early 2022. Credit score in the low 500s. He felt like homeownership was a decade away.

Most conventional programs require a 4-year waiting period after Chapter 7. FHA requires 2 years. But certain Non-QM lenders will go as short as 12 months after discharge — if the credit event was clearly situational and the borrower has demonstrated recovery.

Kevin had rebuilt. New business running profitably. 20% down. Credit recovered to 634. Bank statements showed strong cash flow.

We found a Non-QM program with a 12-month seasoning requirement. He was at 14 months. We closed on a condo in Atwater Village for $680,000.

He told me it felt like getting his life back.

A bankruptcy does not have to be a 4-year sentence. The right program matters.