How Long After Bankruptcy Can I Buy A House?

 

How to buy a house after bankruptcyIf you are wondering how long after bankruptcy can I buy a house? You are not alone.  Getting a mortgage after bankruptcy can seem to be a never-ending process. However, with the assistance of our mortgage experts, you can expect to receive the most efficient, and effective services we’re able to offer. Typically, you’ll have to wait for a period of 2 years after a discharge and 4 years after a dismissal.  However, there are home loan programs that can be available to you as soon as 1 day after discharge. You are also able to get a mortgage during your Chapter 13 bankruptcy but with some extra stipulations.  To learn more about when you can buy a house after bankruptcy read what mortgage experts have to say as provided by the author of this article Robert Weaver.

How Long After Bankruptcy Can I Get an FHA Home Loan?

Some lenders make it possible to get an FHA Home Loan as soon as 1 day after discharge.  In some instances you can receive an FHA loan during the Chapter 13 plan, or after 12 months of successful payments and approval from the trustee.  There are a number of stipulations which you must adhere to best qualify for an FHA home loan.  Some mortgage companies commonly see the duration of time to qualify for an FHA loan after bankruptcy as 3 years. As long as you’re properly aligned with the qualifying factors, there are mortgage companies that will work to get you for a FHA home loan.

How Long After Chapter 13 Bankruptcy Can I Buy a House?

Getting a Mortgage after Chapter 13 Bankruptcy requires the participant to undergo different seasoning periods after their Chapter 13 discharge.  Based on the type of home loan program the seasoning periods vary based on the borrowers current financial position.  Loan programs such as FHA, USDA, and VA loans tend to be even the most lenient for the borrower. This is possible because you’re able to borrow just a year into your bankruptcy plan due to the government-backed nature of the FHA, USDA, and VA loans themselves. Your ability to get a home loan can be affected by factors such as credit score, lack of savings, foreclosure/short sale, etc.

Position Yourself to Purchase a House After Bankruptcy

One key component to improving your chances of buying a house after bankruptcy, is by making on time monthly payments on your repayment plan.  A great way to begin making continuous monthly payments is by getting a secured credit card, and paying it off each month. Making regular continuous payments is crucial to rebuilding your credit score after bankruptcy.  It also shows the courts that you are financially responsible enough to get a mortgage.

Securing a mortgage after Chapter 13 Bankruptcy can take as little as 25 days, to as long as 2 months.  The most common issues that slow the loan process down are credit problems, problems with the property itself, and how quickly your lender receives the required documentation from you.

How Long After Chapter 7 Bankruptcy Until I Can Buy A House?

Chapter 7 Bankruptcy entails a waiting period of typically 2 years in total to obtain a mortgage. This waiting period can also be shortened by improving your overall financial status by paying down existing debts.  You should also begin to build wealth in the form of a savings account, and collateral.

Can I Buy a Second Home after Bankruptcy?

You’ll likely have to wait for a period of 2 years after discharge before you can request a second mortgage.  A better option for many borrowers instead of a second mortgage is to do a cash-out refinance.  When choosing to do a cash-out refinance a borrower has the opportunity to pay off their first mortgage.  In doing so the borrower will receive cash they might need to address other needs. Cash-out refinances work for borrowers after the third year in their Chapter 13 bankruptcy plan or as soon as 1 day after discharge.

If I Filed Bankruptcy Because of Medical Bills, When Can I Buy a House?

Chapter 7 Bankruptcy is the most common filing option for those seeking to dissolve their debts from unsecured sources, such as medical bills. You’ll have to wait a period of two years from your Chapter 7 discharge to apply for a home loan. If you filed a Chapter 13 bankruptcy to deal with your medical bills, then you should be able to get a mortgage as soon as one day after discharge.

If you live in Washington State and need assistance with filing bankruptcy, give Symmes Law Group a call at 206-682-7975 to get the counsel you need.