Home | Resources | Advertisement







Get a Mortgage after Bankruptcy   


Most people in the United States share the American Dream of owning their own home.  Sometimes things happen that make that dream seems impossibly far away, and one of these things is bankruptcy.  Many people wonder if there is any way to still purchase a home or even do a mortgage refinance after you have gone through bankruptcy.  By understand what it takes to get mortgage refinancing or a new loan on a home after bankruptcy, you can be working toward it while you go through the mandatory waiting period. 


This waiting period can be anywhere from 1 to 5 years from the date your bankruptcy is discharged, depending on your circumstances.  If you have improved your credit over that period of time, you may not have to look for a bad credit mortgage, but may be able to look for a conventional loan.  It is important to work on being prepared and having everything in order as you go so that you are ready when that waiting period is over.  Basically, to get an FHA loan your waiting period from the bankruptcy discharge is 2 years, unless there are extenuating circumstances that may allow you to begin the home loan process after one year.  If you want a conventional loan, the waiting period is 5 years. 


One of the biggest issues when working toward getting a mortgage after bankruptcy will be the documentation that you will require.  You should keep track of your discharge papers so that you can prove the timeline of your wait.  You should keep all your financial paperwork in order so that anything that is required can be found.  It is helpful to get a copy of your credit report within a few months of the discharge to see if the bankruptcy discharge is reported there.  If it is not being reported, you will want to make calls and find out where to send copies of the discharge papers so that it can be properly reported on your credit report. 


This waiting period is also a good time to improve your credit score, since that is something that takes time.  Pay off your debts and make any payments you have on time, and you will see that your score can improve.  Don't open any new accounts and work hard to live within below your means.  Save up the money you will need for a down payment and closing costs so that when your wait is over, you are ready to go.  It is nice to know that you can still get a mortgage after bankruptcy.