How Do I Buy a Home After a Bankruptcy?

3 min read

How do I buy a home after a bankruptcy? And what are the long-term effects on my credit? These are two of the most common questions homeowners ask after a financial setback.

There is never a problem buying a home with cash, no matter what your credit rating or history shows. The challenge comes when you try to get a loan. Private loans are available but come with a higher interest rate and additional costs. Conventional mortgages are also an option, though guidelines can be strict; in general, expect that it may take a few years after your discharge — assuming you have maintained good credit — to be approved.

How a bankruptcy and a prior foreclosure interact on your credit report depends on the specific order of events and how your property was handled — details that vary case by case. An attorney can explain what applies to your situation and how it may affect a future home loan.