One of the most common fears relating to filing bankruptcy is that if you file bankruptcy, you will never be able to buy a house….or will have to wait 10 years in order to do so.
This is one of the most commonly misunderstood aspects of bankruptcy. A person who files for Chapter 7 bankruptcy can apply for a FHA or VA home loan 2 years after their case has been discharged. This webpage from Quicken Loans provide information about obtaining a mortgage after a bankruptcy case.
The more traditional type of loans require 4 years after bankruptcy discharge. However, with the dominance of FHA home loans in home purchases, 2 years after discharge would likely apply in most scenarios.
We have had numerous clients who have been able to purchase a home 2 years after bankruptcy. It takes planning and a diligent approach to rebuilding your credit after bankruptcy…but it is more common than you may think.
In fact, for most of our clients, filing bankruptcy provides the fastest route to purchasing a home. It allows for them to rebuild their credit, wipe out huge amounts of debt, and save money for a home down payment, instead of making endless monthly payments credit card companies.
Filing bankruptcy can be part of a plan to purchase a home in the not too distant future. For those who are able to plan and be diligent, it can provide the fastest route to home ownership.
Call a Southern California Bankruptcy Attorney today for a free consultation about your bankruptcy options.