You can buy another home loan, but you will have to sit through a waiting period and rebuild your credit. The length of the waiting period can depend on the type of loan you desire and which type of bankruptcy you had. To obtain an FHA loan or a VA loan after a Chapter 7 bankruptcy, you must wait two years from the date your Chapter 7 is discharged. You can obtain an FHA loan during a Chapter 13 bankruptcy as long as you have made 12 months of satisfactory Chapter 13 plan payments, but you must have bankruptcy court approval to get the loan. In the case of either an FHA loan or a VA loan, you must provide an explanation of the bankruptcy. Although there is an exception for FHA loans. You can possibly obtain an FHA loan after one year if you had an economic event (such as unemployment) that resulted in a loss of income causing you to become bankrupt. Conventional loans have the longest waiting periods. If you want a conventional loan, you must wait four years after receiving a Chapter 7 discharge and two years after receiving a Chapter 13 discharge. If your Chapter 13 case was dismissed without a discharge, you must wait four years from the date of the dismissal. If you would really like a mortgage there are also hard money loan options that you can consider. Either way, the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
Sr. Mortgage Banker
NMLS # 659743
The lowest credit score acceptable for a loan is 580 in this area. That is a special program and you do pay some fees and higher interest rate to participate. Some lenders have minimums on what they lend also. You may have to shop around a bit.... more