Chapter 7 or chapter 13
Some programs lend as soon as the bankruptcy is discharged, on a main home, with a larger down payment and no cash out. Others wait longer, and the terms come closer to a standard loan as time passes.
Cumberland County, New Jersey
Buying after a bankruptcy or foreclosure in Cumberland County, NJ
For Cumberland County buyers and owners with a bankruptcy, foreclosure, short sale, deed in lieu or loan modification in the past: how home loans work after a credit event, what your dates decide, and what to prepare. Fidelity Residential is a direct, licensed mortgage lender with a New Jersey office on Route 36 in West Long Branch, in Monmouth County, and we lend across New Jersey.
- Direct, licensed mortgage lender
- NMLS #103098
- Equal Housing Lender
Where do you want to start?
Pick the closest, or call and talk it through.
Fidelity Residential · NMLS #103098 · Equal Housing Lender
Cumberland County housing
Owners, renters and what homes are worth
About 153,300 residents live in Cumberland County, in about 57,300 homes, by the Census Bureau’s American Community Survey estimates for 2020 to 2024. About one household in three rents, an estimated 33.5 percent or about 18,000 households; the other 66.5 percent own their home.
The median value of owner-occupied homes is an estimated $221,400. About 42 percent of those homes are valued below $200,000, and an estimated 32.5 percent between $200,000 and $299,999.
Fidelity Residential is a direct mortgage lender licensed in New Jersey under a Residential Mortgage Lender License. Our office is at 121 NJ-36, Suite 230, West Long Branch, in Monmouth County; we do not have an office in Cumberland County, and we lend across New Jersey.
The homes and the people
- Detached houses: roughly two homes in three, an estimated 67.9 percent
- Mobile homes: an estimated 5.3 percent of homes
- New arrivals: about 17 percent of households moved in during 2020 or later
- Age: the median age of residents is an estimated 37.7 years
- With a mortgage: an estimated 58.9 percent of about 35,800 owner-occupied homes
Source: US Census Bureau, American Community Survey 5-year estimates, 2020 to 2024. Estimates, not counts.
After a credit event
How a home loan works after a credit event
A bankruptcy, foreclosure, short sale, deed in lieu or loan modification in the past does not rule out a home loan. Conventional and government programs set long waiting periods after an event; other programs shorten the wait, in exchange for a larger down payment, a smaller maximum loan and, at some, more savings after closing.
The longer ago the event, the smaller the required down payment and the larger the loan available. These loans are not sold to the agencies, so each program sets its own rules.
This page describes loan programs. It is not advice about bankruptcy, debt or credit repair; for those, talk to a professional who handles them.
Who it suits
- A past event: buyers with a past bankruptcy, foreclosure, short sale, deed in lieu or loan modification who have steady income now
- Late payments: homeowners with late mortgage payments in the last year, accepted by some programs with a larger down payment
- Lower scores: borrowers with lower credit scores, accepted with a larger down payment
- Renters: first-time buyers and people who have been renting, eligible at several programs
The waiting period
What your dates decide
Waiting periods run from the day the event was settled or discharged, and they differ by program. A loan officer can tell you which programs your dates open.
After the sale
Some programs lend as soon as the foreclosure sale is settled, on a main home, with a larger down payment and no cash out; others ask for a longer wait.
Events of their own
Programs treat these as credit events of their own, with their own waiting periods, and one program needs no waiting period at all, with a larger down payment.
In the last year
Accepted by some programs, with a larger down payment. The more recent and the more serious the lates, the fewer the programs.
A mortgage after bankruptcy or foreclosureMore than one credit event, an active notice of default, or a debt-management plan that is still running usually make a loan ineligible.
Be ready
What to prepare
You still show that you can repay the loan: income is documented with tax returns or a written verification of employment, or for the self-employed with bank statements, 1099s or a profit and loss statement.
A short written explanation of the event and proof that it was resolved are part of the file, and credit re-established since the event is expected.
Most borrowers start with these
- Your letter: a short explanation of the event, in your own words
- The papers: the bankruptcy discharge, the settlement statement or deed, or the modification agreement
- Housing payments: your history for the last year: mortgage statements, cancelled checks or a verification of rent
- Money: bank statements for the down payment, closing costs and savings after closing
- You: photo identification for each borrower
Questions
Questions from Cumberland County buyers after a credit event
Do you lend in Cumberland County?
Yes. Fidelity Residential is a dba of PFN Lending Group, Inc. (NMLS #103098), which holds a New Jersey Residential Mortgage Lender License, and we lend across New Jersey. You can check the licence on NMLS Consumer Access (opens in a new tab).
Do you have an office in Cumberland County?
No. Our office is at 121 NJ-36, Suite 230, West Long Branch, NJ 07764, in Monmouth County. Call 732-686-9999 to talk with a licensed loan officer.
How soon after a bankruptcy can I get a mortgage?
It depends on the program and your dates. Some lend as soon as the bankruptcy is discharged, on a main home, with a larger down payment and no cash out; others ask for a longer wait. A loan officer can tell you which programs your dates open.
What credit score do I need?
Lower credit scores are accepted with a larger down payment. Credit re-established since the event is expected, and your housing payments since the event matter as much as the score.
Can I get an FHA loan after a bankruptcy or foreclosure?
Sometimes. FHA sets waiting periods after events such as a bankruptcy or foreclosure, and the lender looks at how your credit has been handled since. Tell your loan officer about it at the start.
Can I buy a second home or a rental property after a credit event?
At some programs, usually after a longer wait than for a main home. The shortest waiting periods are for a home you will live in, and they do not allow cash out.
Talk with a loan officer near you
Get a quote online, or call us and talk it through with a licensed loan officer.
What happens next
- Tell us about your loan. A few quick questions about the property and the loan you want. No credit check to start and no obligation.
- A licensed loan officer reviews your answers and follows up with you, usually within one business day.
- This is a request for a quote, not a loan application and not a commitment to lend.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice.
Reviewed by Robert Shamie, CEO, NMLS #241428 · Last reviewed:
Fidelity Residential (PFN Lending Group, Inc., NMLS #103098) is a direct mortgage lender licensed in 40 states and the District of Columbia, with 26 years in business.