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The Wait To Buy a Home After Bankruptcy

Dec. 27, 2022

Steps to Take in Buying a Home After Bankruptcy

Overall, there will be general steps you’ll have to take when going about buying a home after you’ve previously filed for bankruptcy. The first and probably most obvious step (one that’s always pointed out by lending companies like Rocket Mortgage) is to simply start out by rebuilding your credit to a level that actually qualifies you to purchase a home.

By filing a bankruptcy, you provide yourself the ability to start the credit rebuilding process. By removing the negative reporting, you are able to start really making a difference with your credit score. This will help you with not only a home, but with other forms of credit too!

The Homebuying Wait After Chapter 7

Many people realize that after filing for Chapter 7 bankruptcy it will take a decade for it to fall from your credit report. But, that doesn’t mean that you have to wait that long to buy a home! In fact, most people’s credit scores start improving within months of filing a bankruptcy!

For example, you could possibly get a HUD mortgage or a VA mortgage just 24 months after a Chapter 7.

The Homebuying Wait After Chapter 13

The amount of time that you will have to wait to buy a home after filing for Chapter 13 bankruptcy will be based on how you got into the financial position to have to file for bankruptcy in the first place.

For example, according to Forbes, if it is a USDA mortgage that you’re aiming for after a Chapter 13, there’s a chance that you'll be eligible, that’s if you either have completed your repayment plan or have been consistently adhering to the terms of that plan. This would be the case if you were applying for a USDA loan within 36 months of the bankruptcy.

To have a chance at getting a loan through the VA, you'd have to wait no less than a year after filing bankruptcy, and HUD requires borrowers with previous bankruptcies to wait at least the same amount of time.

Contact Your Local St. Louis Bankruptcy Attorney

You’ll hear all kinds of rumors when it comes to purchasing a home after filing for Chapter 7 or 13. But, the only way to truly know for yourself is by actually going through the process yourself, and by following the guidance of your attorney.

That being said, feel free to contact me at 314-866-3955 so we can schedule your initial consultation session.