Most people are happy to find out that buying a home after bankruptcy is possible. If you have successfully eliminated your debt through bankruptcy, you probably feel ready to take on new financial challenges.  While it may be too early to take the big step of purchasing a home, you still likely have questions.  How long it will be and what you will need to accomplish before receiving approval for a home loan?  Many people believe that filing for a bankruptcy  permanently ruins your credit score. Depending on your amount of debt, your credit score may certainly take a hit.  But your credit score will not remain less than desirable forever.

Buying a Home After Bankruptcy is Possible:

The time period you must wait before purchasing a home after completing bankruptcy varies.  It depends on the type of home loan you are seeking.  If you wish to obtain an FHA or VA loan, and you are filing for Chapter 7 bankruptcy, you must wait at least two years after the date your bankruptcy discharges before applying for the loan.  If you have filed for Chapter 13 bankruptcy, and you wish to obtain an FHA or VA loan, you cannot apply for the loan until you have made at least twelve (12) months of satisfactory Chapter 13 payments.  Further, you must have approval from the bankruptcy court before you apply for the loan.  You will have to provide an explanation for your bankruptcy when applying for the loan. To find out more call our Claremore Bankruptcy Attorneys Today!

If you want a USDA loan, you must at least three years from the date your Chapter 7 bankruptcy discharges.  If you have filed for Chapter 13 bankruptcy, you cannot apply for a USDA loan until you have made twelve (12) months of satisfactory Chapter 13 payments, and have obtained approval from the bankruptcy court.  You can also apply for a USDA home loan after one (1) year since the Chapter 13 bankruptcy discharge.

If you want a conventional home loan through a private lending institution, you must wait much longer than for a government-backed home loan.  Further, if you file for Chapter 7 bankruptcy, you must wait four (4) years from the date your bankruptcy discharges before applying for a home loan.  If you file for Chapter 13 bankruptcy, you must wait two (2) years from the date your bankruptcy discharges before applying for a home loan.

Your Credit Score Can Go Up After Bankruptcy:

Your ability to manage and pay debt contributes largely when lending institutions review your home loan application.  Given that you will need to wait a certain period of time before applying for a home loan following the completing of your Chapter 7 bankruptcy, or after making twelve (12) months of satisfactory Chapter 13 payments, you should take that time to rebuild your credit.

If you obtain a credit card or small loan after discharging your debt, your credit score can steadily increase.  The ability to manage debt is essential to receiving a good credit score.  Moreover, having a good credit score increases the chances to receive approval for a home loan.  It also increases the chance of receiving a more favorable interest rate.  You should also do everything in your power to save money to use as a down payment on a home.  Having a substantial down payment will help you reduce your monthly mortgage payment as much as possible.

Contact a Claremore Attorney About Buying a Home After Bankruptcy:

If you live in Rogers County and you are considering filing for bankruptcy but wonder if you concerned about buying a home after bankruptcy call our bankruptcy attorneys today. We offer a free consultation.  We also provide you all the information you need to understand what a bankruptcy is and its impact as well as Oklahoma bankruptcy exemptions.