Can You Buy a House After Bankruptcy?

Can You Buy a House After Bankruptcy?

Yes, you can still buy a house if you have declared bankruptcy. The length of time as to when you can buy a house after bankruptcy depends on what was discharged in the bankruptcy.

How Long After Bankruptcy Can I Buy A House?

A person can buy a house two years after a mortgage is discharged. The two years is after the discharge, not when the bankruptcy is filed. A bank will ask for a copy of the discharge papers. If a potential buyer has been foreclosed on then this time line will be different.

Does Declaring Bankruptcy Wipe Out My Credit

No. Often times in the long run and when done right it can a lot of times increase a credit score. The actual bankruptcy clears the debts. After the discharge, a person should get one of the minimal credit cards and charge a couple hundred dollars that they pay off at the end of each month. This will quickly rebuild credit history.

Need 2 Years Post Bankruptcy & What Else to Buy a House?

You still need the Big 3 when it comes to buying a house. Credit which the Bankruptcy if done right has helped, employment and down payment (equity). If you have those three pieces and two years (provided that you have not been foreclosed on), then you should be able to purchase a home. Remember that each person’s situation is different and they should consult a mortgage banker to help create a game plan to achieve your real estate goals.

What Does a Bankruptcy Do to my Interest Rate?

A bankruptcy can effect your interest rate based off of your credit score. If your credit score has gone up then it will affect your interest rate in a positive way.  There is not an additional risk layer where because you have declared bankruptcy they add a premium onto the rate.