Can I Buy a Home After Filing for Bankruptcy?
Many people think it’s impossible to buy a home after filing for bankruptcy. Unfortunately, there are many bankruptcy myths. The good news is, this couldn’t be further from the truth. Not only is it possible, but you don’t have to wait ten years, either.
Of course, you will have to wait until you can re-establish credit. This amount of time will be different for everyone. It could take a few years, so spend those years repairing your credit and doing prep work that will enable you to one day buy a home. Here are a few of the things you can do:
- Have at least two consumer credit cards in your name, with at least two years’ history of on-time payments and low balances.
- An active car loan with a history of on-time payments, OR a paid-off car with a history of perfect payments.
- A sizable savings account for a down payment.
- Realistic expectations. Prepare to purchase only what you can afford.
Two years after your bankruptcy is complete, your credit score should no longer be adversely affected. As long as you have not gotten yourself back into debt, you may be able to purchase a home. The better your credit score, the lower interest rate you’ll pay. Conversely, the worse your credit score, the higher interest rate you’ll pay, as you’ll be considered a risk.
Beware of companies calling themselves “bankruptcy friendly.” They may help you get a mortgage, but may also charge you hidden fees. Shop around before you commit yourself to any company, and make sure you understand all fees involved with buying a house, including loan fees, tax escrows, insurance, and closing costs.
Call us toll-free today at 1-800-260-1402 for your complimentary initial bankruptcy consultation or visit one of our 100 offices across the United States. You can also read our many informative articles on our website, www.maceybankruptcylaw.com. For the best advice on filing for Chapter 7 or Chapter 13 bankruptcy protection, trust the experienced and caring attorneys at Jacoby & Meyers Bankruptcy Law.