The short answer is yes. These days, lenders are willing to allow borrowers to get a mortgage on the heels of a bankruptcy sooner than was possible in the past.
How long you have to wait depends on a few factors:
If you’ve filed Chapter 7 bankruptcy, obtaining a new home through a mortgage broker will have to be put on hold for at least two years. To be exact, you may qualify for a loan two years from the date of your Chapter 7 bankruptcy discharge, not from the date you file. Typically, you will receive the discharge papers just before your case closes. This is when the clock begins ticking.
Chapter 13 bankruptcy is a three- to five-year proposition. You can buy a house during that time if you obtain an FHA loan and meet certain conditions, including court approval and proof that you’ve paid 12 months of plan payments.
You’ll be more likely to get the home if you:
There is one way you may successfully speed up the process. In the case that you filed for bankruptcy because of no fault of your own, you may be entitled to wait only twelve months. Our suggestion is to:
Don’t let a temporary setback, such as filing for bankruptcy, put a dark cloud over your home ownership dreams. Contact Golden Oak Lending today and learn how we can help you put your best foot forward.