FREE Bankruptcy Consultation Seattle, WA

You may be curious to know how long after bankruptcy can I buy a house?  Getting a home loan after bankruptcy can seem like it is out of reach, however, with the assistance of a mortgage expert, you can expect to learn about all of your options and the work ahead needed to qualify Typically, you need to wait a least 2 years after receiving a bankruptcy discharge and 4 years after a bankruptcy case dismissal.  With that said, there may be home loan programs that may be available to you as soon as 1 day after a bankruptcy discharge in chapter 13 bankruptcy. You may also qualify to get a mortgage during your Chapter 13 bankruptcy but with some extra requirements.  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 mortgage originators make it possible to get an FHA Home Loan as soon as 1 day after discharge in a chapter 13 bankruptcy.  In some circumstances potential homeowners can receive an FHA home loan during a Chapter 13 bankruptcy plan, or after 12 months of successful payments and approval from a chapter 13 bankruptcy trustee.  There are a number of requirements which potential borrowers must comply with to best qualify for an FHA mortgage loan.  Some lenders often times see the duration of time as a factor to qualify for an FHA loan after a bankruptcy filing, which may be 3 years. As long as you have met the minimal requirements, there are mortgage companies that will work to get you for a FHA mortgage.

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

Getting a Mortgage after Chapter 13 Bankruptcy requires the potential borrower to undergo different seasoning periods after their Chapter 13 bankruptcy discharge.  Based on the type of home loan the bower is applying for, the seasoning periods vary based on the potential borrowers current financial position.  Loan programs such as FHA, USDA, and VA loans tend to be more favorable to potential borrowers. This is possible because borrow may qualify for a home loan just a year into a bankruptcy plan due to the government-backed nature of the FHA, USDA, and VA loans themselves. An applicants ability to get a home loan can be affected by an applicants credit score, lack of savings, foreclosure/short sale, etc.

Position Yourself to Purchase a Home After Bankruptcy

One major factor to improving your chances of buying a home after a bankruptcy filing, is by making on time monthly payments on your chapter 13 repayment plan.  A good way to begin making consecutive monthly payments is by getting a secured credit card, and paying it off every month. Making regular continuous monthly payments is critical to building your credit score after a bankruptcy filing.  It also shows the court that you are financially responsible enough to qualify for a new home loan.

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

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

Chapter 7 Bankruptcy comes with a waiting period of 2 years on average in total to obtain a home loan. This waiting period can also be shortened by improving your overall financial status by paying down existing debts at the time of your application and potentially adding authorized users to your credit to help build your credit scores.  You should also begin to build wealth in the form of a savings account, and collateral.

Can I Buy a Second House after Filing Bankruptcy?

You will likely need to wait for a period of 2 years after discharge before you can ask and receive a second mortgage.  A better option for many potential borrowers, instead of a obtaining a second mortgage is to obtain a cash-out refinance fi there is equity in a home owned by the borrower.  When looking to do a cash-out refinance a borrower has the opportunity to pay off their first mortgage.  If you qualify for a cash out refinance,  the borrower will receive cash they might need for living expenses or home improvement projects. Cash-out refinances work for borrowers after the third year in their Chapter 13 bankruptcy plan or as soon as 1 day after a bankruptcy discharge.

If I Filed Bankruptcy Due to Medical Bills, When Can I Buy a House?

Chapter 7 Bankruptcy is the most common filing option for those seeking to discharge their debts from unsecured creditors such as medical bills or credit cards. You will need 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 get your medical bills under control, 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 or schedule an initial consultation to get the counsel you need.

  • Richard Symmes

    Hi, Richard here

    Book a time on my calendar to receive a calendar invite along the option to schedule a Phone, Office or Zoom consultation.

    You may also fill out the contact form to get in touch and get a copy of my free e-book Guide to Living Debt Free in Washington State, Bankruptcy and Other Alternatives.