Interesting take on credit unions being more forgiving—I’ve seen that too, but honestly, it varies a lot. I've had clients breeze through with smaller banks who were surprisingly flexible, while some credit unions were stricter than my high school math teacher (and trust me, she was tough). It really comes down to the specific lender's underwriting guidelines and how they view risk.
Also, while consistent credit improvement is key, don't underestimate the power of a bigger down payment entirely. I've seen lenders bend their rules slightly if the borrower has significant skin in the game. Sure, it won't erase a bankruptcy from their memory (they have elephant-level recall for that stuff), but it can sometimes tip the scales in your favor.
Bottom line: shop around and don't assume one type of lender is always better than another. You might be surprised who ends up giving you the green light...
Great points here. From personal experience, I'd lean toward saving up a bigger down payment rather than just waiting it out. After my bankruptcy, I found that lenders were way more receptive when I showed up with 20% down instead of the bare minimum. It didn't erase the past, obviously, but it definitely opened doors that seemed shut before. Still, every lender's different, so it's worth checking around—sometimes smaller banks surprised me with their flexibility.
Good insights from your experience, though I wonder if the bigger down payment always outweighs the benefit of waiting a bit longer to rebuild credit scores. Did you notice if interest rates improved significantly with more time, or was it mainly just about lender approval?
"Did you notice if interest rates improved significantly with more time, or was it mainly just about lender approval?"
From what I've seen, it's mostly about lender approval at first. Had a client who waited around 18 months post-bankruptcy—interest rates didn't drop drastically, but the lender options definitely got better. Sometimes patience pays off more than the bigger down payment...
I noticed something similar when my sister went through this. She waited about two years after bankruptcy, and while rates barely budged, suddenly she had way more lenders willing to work with her. Seems like time really does open doors...
