That’s interesting—do you think it’s just the big banks that are strict, or does it come down to individual loan officers? I’ve heard some lenders barely glance at old bankruptcies if your recent credit history is clean, but others seem stuck on it no matter what. Ever notice any patterns with different types of properties or loan sizes?
Honestly, it’s a bit of both. I’ve seen some big banks act like they’re allergic to anything with “bankruptcy” on it, no matter how ancient it is. But then you get that one loan officer at a smaller credit union who’s more interested in your last two years than what happened a decade ago. It can feel like rolling the dice.
Funny thing—when I was helping a client buy a duplex last year, the lender barely blinked at her old bankruptcy because she’d rebuilt her credit and had solid income. But another time, with a single-family home and a different lender, they grilled my buyer about a seven-year-old bankruptcy like it happened yesterday. No rhyme or reason sometimes.
I do notice jumbo loans seem to get more scrutiny, especially if there’s any kind of blemish on your record. Investment properties too—they’ll dig deeper. But for standard residential loans, if your recent history is clean, you’ve got a fighting chance... unless you catch someone on a bad day or they’re just super by-the-book. It’s wild how much it can vary.
Definitely seeing the same thing. Here’s what I’ve noticed from my own projects:
- Had a deal last year where the buyer’s bankruptcy was 8+ years old. Credit was solid, income stable, and the lender barely mentioned it.
- On another property, different lender, same kind of timeline—suddenly it was a huge issue. They wanted every detail, even old court docs.
- Seems like underwriters have their own “risk radar.” Some are sticklers for the rules, others focus on the recent credit behavior.
- I’d say investment properties and anything non-conventional always get more scrutiny, no matter how old the bankruptcy is.
Honestly, it feels like there’s no universal standard. Just depends who’s reviewing the file that day...
Yeah, I’ve run into this too. One lender barely glanced at a decade-old bankruptcy, another grilled us over every detail—even wanted a signed letter explaining it all. Seems like it’s a total toss-up. Underwriters can be unpredictable, especially with investment deals.
Title: Does an old bankruptcy matter more than a recent one?
Seems like it’s a total toss-up. Underwriters can be unpredictable, especially with investment deals.
- Definitely seeing the same thing lately. Some lenders treat anything over 7 years old as ancient history, others act like it happened yesterday.
- It really depends on the lender’s risk appetite and their current guidelines. I’ve had files where a 12-year-old bankruptcy barely got a mention, but then another lender wanted a full explanation for something from 2009.
- Investment properties seem to get extra scrutiny, especially if you’re self-employed or have complex income streams. They’ll dig deeper into your credit history and want to know what’s changed since the bankruptcy.
- One thing I’ve noticed: if you’ve rebuilt your credit well and have solid reserves, some underwriters are way more forgiving about older bankruptcies. But if there are any recent late payments or new collections, they get nervous fast.
Curious—has anyone here actually had better luck with smaller local banks or credit unions? Sometimes they seem more flexible than the big national lenders, but maybe that’s just my experience.