Bankruptcy will seriously damage your credit rating and impact your ability to obtain normal mortgage financing for some time.

There are steps you can take, however, to improve your ability to obtain a mortgage loan without waiting 5 or even 10 years to qualify. Mackinac is a portfolio lender and uses its own common sense underwriting to consider compensating factors rather than being bound by strict government agency guidelines. These are some of the factors we can consider when evaluating an applicant with a previous bankruptcy.

  • Mackinac will want to know the cause of the bankruptcy. Was it due to a single event, such as a heath event, job loss, etc., or was it due to poor budgeting.
  • Has the condition causing the bankruptcy passed and what are the prospects for your financial future.
  • Reestablish your credit with a new credit card or purchase a necessary item on an installment plan. A good payment record on these new accounts should improve your credit score and help you ability to obtain new mortgage financing.
  • Correct any credit report errors. Make sure your official credit record is correct. Order a free credit report from each of the 3 major credit bureaus (Experian, Equifax and TransUnion). If you find errors, immediately contact the credit bureau in writing to correct the error.
  • Demonstrate that you are regularly saving a portion of your income.

To arrange a private consultation regarding bankruptcy, or other credit issues, contact a loan officer