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If you've gone through a Chapter 7 bankruptcy, you need to wait at least 4 years after a court discharges or dismisses your bankruptcy to qualify for a conventional loan. Government-backed mortgage loans are a bit more lenient. You need to wait 3 years after your bankruptcy dismissal or discharge to get a USDA loan.

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SleeplessDeath19

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โˆ™ 2020-12-02 14:18:46
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โˆ™ 2015-07-16 19:28:08

Below are the perspectives of some Wiki s contributors about buying a house after bankruptcy:

  • First, any bankruptcy must be "discharged" by the court. You also cannot be in any "Credit Counseling" or other programs that take over your finances. It is actually easier to buy a house than a used car. The "lender" is looking to meet several criteria. Debt to Income ratio, Stability and time on the job. Money in the Bank and bounced check history.Any Retirement or 401 K assets. In America money solves all problems. A big down payment means business.
  • I am a Mortgage Lender and with a 15% down-payment plus closing costs, you can almost always find mortgage financing 1 day after the bankruptcy is discharged and filed at the courthouse.
  • Many times if you have a home already and enough equity you can refinance right out of bankruptcy altogether, or refinance out of filing. You will need a broker who is willing to do a lot of work for you and a Bank is not the place to go for you until you have rebuilt your credit rating.
  • I have spoken to several mortgage lenders, and almost all of the lenders agree that two years is the amount of time after your bankruptcy discharge that it takes to be able to get a decent mortgage. Granted, you may be able to get a mortgage sooner, but your terms (i.e. interest rate, etc.) will not be as attractive as it would be if you can wait 2 years. Considering that you'll be paying that interest for up to 30 years, it definitely saves you a lot of money if you can wait long enough after the discharge to get a good interest rate. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
  • I am a Mortgage Loan Consultant and I have made it my area of expertise in working with people with bankruptcies, bad credit, and foreclosures. Firstly you do NOT have to wait 2 years to refinance after a chapter 7 discharge, those are for Fannie Mae loans. You can refinance a chapter 7 a day after discharge. A chapter 13 can also be refinanced before discharge since it's on a payment plan for 3-5 years from filing date. You can get a chapter 13 refinance as little as 12 months from filing, not discharge and you can payoff your chapter 13 in the process if you have enough equity in your home. Depending on your income, credit score, and trustee rating (if in a chp 13), you can qualify for upwards of 100% financing. There are major differences between a chapter 13 and chapter 7 refinance but that is for your mortgage broker to be aware of.
  • It is not a question of time. If you qualify, you could buy a house the day after your discharge. If you qualify by having a large down payment, you may find yourself trying to explain to the bankruptcy judge where you got a 15% down payment (around $30,000 for the average house) when your Chapter 7 documents showed a lot less. Beware of mortgage lenders. There are still unreconstructed scam artists out there who will take your money and give you nothing but grief. There are some special programs for first time home buyers, but those usually require a history of good credit, a steady job and often some money in savings. Again, unlikely in a near post-Chapter 7 period. Pay your bills on time, save some money, keep the same job for a while. The more down-payment you can make, the better your chances - as long as you were not hiding assets in the Chapter 7.
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Q: How soon after Chapter 7 bankruptcy can you buy a new house?
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Related questions

How soon after bankruptcy can you buy a house in Nevada?

When you have the money


Can you buy a house while in chapter 7 bankruptcy?

you can buy a house no matter what book you are reading.


How soon after Chapter 7 bankruptcy can you buy a new RV?

one year.


How soon after bankruptcy in Kentucky can you buy a house?

5 years


How soon after Chapter 7 bankruptcy and forecloser can you buy a new house?

If you had an FHA insured home, you will have to wait for three years after the mortgage company claimed their refund.


How soon after a chapter 7 bankruptcy can you buy a car?

The day you are discharged you can buy a car. You need to take proof that you are discharged.


How do you buy a house while in a chapter 13 bankruptcy?

The chapter 13 petitioner/participant must receive the approval of the bankruptcy trustee for all major financial transactions.


After Chapter 7 bankruptcy has been Discharge can buy a home?

After Chapter 7 bankruptcy has been Discharge can buy a home


Can you buy house with cash after file bankruptcy chapter 7?

Yes, you can buy a house for cash after filing for bankruptcy. The only issue is as to where those funds came from. If they were part of your estate at the time of filing and not disclosed, then you will have a problem.


How soon after filing chapter 13 can you hope to buy a home?

The best time to purchase a new home after filing for Chapter 13 bankruptcy depends on how long your bankruptcy will be. If you have your payments on a five year plan, then you may have to wait a little longer.


How soon can you buy a car after chapter 13 discharge?

You can buy a car right after you get your discharge papers. Most Car Dealers offer special programs for Bankruptcy Discharges.


How soon after bankruptcy can you buy a car loan?

As soon as you get the cash to pay for it


How soon after chapter 7 bankruptcy can you buy a new car?

The day you get your discharge paper. I do caution against that because ANY bad mark after a bankruptcy is taboo and you will not be able to finance anything for a long time.


Can you buy a house if you have filed bankruptcy?

No.


Can you buy a big rig after filing chapter 7 bankruptcy?

Yes


Can you buy a condo while undergoing a Chapter 13 Bankruptcy?

Your bankruptcy attorney, who has particular knowledge of your situation, can answer your question.


Can you buy new house after bankruptcy chapter 7?

Yes, you can buy a home after filing for bankruptcy. The question is going to be whether or not you can obtain financing. If you can wait 2 years after filing, you will have a better chance of obtaing a decent loan at a decent interest rate.


Can you buy a home after bankruptcy?

Yes, as soon as you reestablish your credit to the lender's satisfaction.


Can you buy a new car before filing for chapter 7 bankruptcy?

If you buy a used car with cash before filing a chapter 7 bankruptcy, How long do you need in between purchase and filing to keep the vehicle if the vehicle meets exemption in a state?


How long should you wait after bankruptcy to buy a house?

about a year or two


When you file for bankruptcy how long before you can buy a house?

When you file for bankrupt, you can wait for 2 years before u can buy a house.


Can your file for bankruptcy and still buy a house?

i am not 100% about being able to buy a house, but you CAN keep your house if you already own 1,but you do have to pay any equity in the house to your liquidator.


Can you buy a house while in Chapter 13 bankruptcy?

Yes, you can buy a house while in a chapter 13, you can buy anything you want but You need the courts permision. The most difficult part is finding a lender who understands that you can not add post filing credit to your bankruptcy. Most creditors believe that you can and won't give you the time of day let alone credit.Yes.However, there are programs available for you that do not require your CH.13 Bk to be discharged. Most of them only require you to have 24 months since bk filing date and a good payment history on your bk and any other reestablished credit.All major financial transactions entered into by chapter 13 participants must be approved by the trustee in charge of the bankruptcy.


Can you buy a car one year after filing chapter 13 and can your creditors take your car if you don't wait until you're discharged from your bankruptcy?

While in a Chapter 13 debt repayment bankruptcy, you must consult the bankruptcy trustee before engaging in a major financial transaction, such as the purchase of a vehicle.


Is it 5 years after bankruptcy and foreclosure that you can buy a house?

2 years for an FHA loan