Buying A Home After Filing Bankruptcy

If you've filed bankruptcy in the past, can you still purchase a home? The short answer is YES!!! Keep reading for more information on buying a home after bankruptcy.

Filing bankruptcy doesn't prevent you from buying a home, but of course there are some rules and stipulations for purchasing a home after you've filed. First, you have to understand the different types of bankruptcies and how they effect your credit. Also, you have to know how filing bankruptcy effects you when it comes to apply for a home loan as it relates to the type of home loan.

First, let's get into the different types of bankruptcies. Chapter 7 bankruptcy, also known as the 'clean slate' bankruptcy, is where filing causes all of your previous debts to be removed without you having to pay anything back giving the debtor a "fresh start". Chapter 13 bankruptcy is the reorganization of your debt where the courts allows the debtor to keep all their property and pay debts back over time, usually three to five years. (Source: United States Court)

After filing either chapter 7 or chapter 13 bankruptcy, in order to get a home there is a waiting period and the waiting period depends on the type of loan you're trying to obtain.

Bankruptcy, loan type and waiting period below:

Chapter 7

• Conventional loan: 4 years after being discharged or dismissal.

• USDA loan: 3 years after discharge or dismissal

• FHA or VA loan: 2 years after discharge or dismissal

Chapter 13

• Conventional loan: if court dismisses your bankruptcy, 4 years. If discharged, 4 years from the date you filed and 2 years from the dismissal date.

• USDA loan: 1 year

• FHA or VA loan: requires a dismissal or discharge in order to apply.

Source: Rocket Mortgage

Happy house hunting!