How long SHOULD you wait before buying a house following bankruptcy? You should wait until you're financially stable again. Until you have some reserve funds, and are confident you can make the payments...as well as handle unexpected expenses. Until you've taken whatever credit counseling courses are offered in your area.

How long MUST you wait? Consult with a mortgage broker for guidance.

Lending answer:

2 years after discharge (BK7) or filing date (BK13) for FHA. Four years for mortgages conforming to Fannie/Freddie guidelines after discharge for BK7 & BK13. Lenders will require re-established credit with zero derogatories.

Even then it will be tough to persuade a lender to approve the loan. Most lenders at present are frightened of riskier loans - not only for the potential for further losses, but also due to new state and Federal legisation that holds them responsible for as yet untested standards of "fair lending".

The handful of lenders that might consider an application with a recent bankruptcy are likely to charge high rates, fees, and unfavorable (to you) terms.

As an alternative, a good Realtor could help you find a home with seller financing or a lease option. Either of these choices can get you into a home sooner and also prepare you to qualify for an FHA refinance loan in the future.

Dawn,
With all the changes that have occured in the last year regarding the credit criteria for issuing mortgages I would really recommend you present this to a lender for their opinion.
A year and a half ago, I saw Buyer's getting financing within 3 months of coming out of bankruptcy. Now, they did have to pay much higher rates, since they were a higher risk, but if they paid on time and kept up with their payments- they were fine.
But, now - even people with good credit are having challenges with getting financing. You should have someone review with you what your credit scores are, and advise you on a time-table by which you could get back on track.

I would also advise that you be very careful, make sure that you consider what is necessary to keep yourself in financial stability. All the Best to you.

Dawn,

If you have dealt with an Attorney upon filing bankruptcy, did you ask their advice?
Respectfully, such proceedings are looked upon with a stigma sense...