You can definitely buy a house after bankruptcy. Some loans require you to wait 2-4 years before you can apply. FHA loans are generally more forgiving in terms of credit requirements and so are a great option if you recently went through bankruptcy. You can file bankruptcy and keep your house if you file for Chapter 13. Chapter 13 allows you to restructure your debt instead of losing assets. If you file Chapter 7, you may still keep your home by protecting the equity in it through an exemption.Can You File Bankruptcy and Keep Your House?
Can You Buy a House After Bankruptcy? FAQs
Yes, it is possible to buy a house after filing for bankruptcy if you meet the requirements of your lender and other government regulations. Depending on the type of bankruptcy you file, you may need to wait several years before being approved for financing.
The exact amount of time you must wait varies based on what type of bankruptcy was filed and can range from two to eight years. The waiting period begins when the bankruptcy is discharged or dismissed.
Yes, certain government programs, such as the USDA Home Loan and FHA Back to Work Program are geared towards those who have recently filed for bankruptcy. These programs offer more flexible credit requirements, making it easier to qualify for a loan after filing for bankruptcy.
It is important to begin rebuilding your credit as soon as possible by making all payments on time and working with an experienced financial advisor. It is also helpful to create a budget and save money for a down payment on the home you want to purchase.
Not necessarily. While having good credit may make the process easier, it is possible to buy a house after bankruptcy with less-than-perfect credit.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.