For many people, filing for bankruptcy can feel like a jumping off a cliff and not knowing what waits at the bottom. If you are considering bankruptcy, this fear can keep you from moving forward and creating a real second chance for yourself. Among the other things that worry people about life after bankruptcy is whether or not they’ll ever be able to qualify for a mortgage and buy a home.
The good news is that there is, in fact, good news. Although bankruptcy does affect your credit, it does not last forever. you might think of it as a severe bruise to your credit rating, but not a permanent scar. In fact, depending on your specific circumstances, you may be able to get approved for a mortgage in as little as couple of years after completing your bankruptcy.
Different lenders and subsidy programs all have their own guidelines that dictate how long a person must wait to apply for a mortgage after a Chapter 7 or Chapter 13 bankruptcy. Still, in most cases, individuals who complete a bankruptcy procedure may have success securing a mortgage after only a few years.
Of course, the longer that you wait after the bankruptcy is complete, the better your credit score can be if you take care of it. While you may be able to secure a mortgage only a few years after a bankruptcy, that doesn’t mean that you’ll get very good terms.
Realistically, each person who considers bankruptcy does so for different reasons, and those reasons affect how their options play out once the bankruptcy is complete. If you have further questions about filing for bankruptcy and creating a clean start for yourself, an attorney can provide answers.