Buying a Home With a Recent Bankruptcy?   How long after a bankruptcy can I buy a home again?

Today some lenders are able to take a look at person’s overall credit and financial picture to seek out borrowers who may have had a single issue leading to the filing of a bankruptcy.  It is possible to buy a home with a recent bankruptcy discharge (in as little time as 1 week discharge) or even  short sale.  These particular programs are credit score driven so if a person had good to excellent credit just prior to the bankruptcy, he/she may be able to qualify for a home purchase loan right away.  Alternatively, there are additional programs where if a borrower has a down payment (the percentage will vary based upon the credit score), financing is still possible with only an average rating.

FHA guidelines have different seasoning requirements for Chapter 7 and Chapter 13 bankruptcies.   In addition, each lender may have their own in-house guidelines on top of the FHA seasoning requirements after a bankruptcy.  So for the most part, FHA guidelines require that two years elapse from the discharge of  a Chapter 7 bankruptcy before loan eligibility.  If a borrower can prove 12 months of consecutive on-time payments, they may be eligible for an FHA loan in only one year with a Chapter 13 bankruptcy.  This new loan though may require permission from the Court as the borrower takes on new debt.

In 2014, Fannie Mae changed it’s guidelines from a mandatory 4 years after a bankruptcy to a 2 year waiting period to match the FHA loan guidelines.

Following Suit, VA loan guidelines also require  minimum of 2 year seasoning for a Chapter 7 Bankruptcy, and a 1 year seasoning after a Chapter 13.