Do you have a bankruptcy on your record? If yes then how long can I buy a house after chapter 7? It can feel like you will never be able to return to financial normalcy. However, the truth is that bankruptcy is not a permanent black market on your credit report. It is even possible to buy a house after bankruptcy if you know which steps to make. In this, we will elaborate in detail how many time you need to wait after filling to apply for a loan and how you can enhance your chances of success. This blog will help you to know about the time that can be taken to buy a house after chapter 7 bankruptcy.
How Long I Can Buy A House After Chapter 7 Bankruptcy?
If you want to know something about how long can I buy a house after chapter 7, firstly, you need to wait until a judge charge dismisses your bankruptcy before you can get a loan. However, how much time you need to do wait? The answer of this depends on the bankruptcy type you have on your record and type of the loan you want. As per the title, here we will discuss your wait as per chapter 7 bankruptcy in the next paragraph.
Chapter 7:
In this paragraph, we will discuss chapter 7 and how long can I buy a house after chapter 7. The most main type of bankruptcy is chapter 7 bankruptcy. During a chapter 7 bankruptcy, the court wipes your qualifying debts. Uninterestingly, your credit will also take a major hit. If you have gone through chapter 7 bankruptcy, you need to wait at least 4 years after the court dismisses your chapter 7 in order to be eligible for the conventional loan. In addition to this, government back loans are a bit more lenient. You need to wait at least 3 years after your court dismissal or discharge to obtain the USDA loan. To be eligible for the VA or the FHA loan, you only need to wait 2 years after your discharge or dismissal.
Conclusion:
It is easier to get a mortgage after bankruptcy. The amount of time that how long can I buy a house after chapter 7, is dismissed depends on the type of bankruptcy and your loan type. If we talk about chapter 7 bankruptcy, it will be beneficial for you to wait around 2-4 years depending on your type of loan. If we compare FHA, VA, and USDA loans, Federal Housing Administration or FHA loans are a great option after bankruptcy they allow you to buy a home after bankruptcy. This is because they allow you to buy a home even with lower credit scores.
Prior you apply for the preapproval; you should enhance your credit score. For a loan preapproval, you can apply after your waiting period expires. In addition to this, having your financial documentation in order and reply to lender inquiries quickly for the best shot at approval.
