Do you have a chapter 7 bankruptcy in your financial records and wonder how long can I buy a house after chapter 7? The reality is yes, you can get a home loan, but the waiting period depends upon the home loan you choose to acquire. Real Estate Diary has outlined some of the crucial information that you need to know in order to achieve the right mortgage loan for you.
How long can I buy a house after chapter 7?
First of all, you have to wait till the court dismisses chapter 7, after that you can go for a mortgage loan. Again, the exact answer is its diverse on what home loan you choose, as diverse home loans have diverse requirements. Chapter 7 is the most common kind of bankruptcy. Throughout chapter 7, the court rubs off your debts, and it harms your credit profile as well. In order to acquire a home loan on how long I buy a house after chapter 7, the waiting period will go around 3-4 years, at least until the court dismisses your bankruptcy in order to get qualified for a conventional loan.
If you want to acquire Government-backed loans, then the waiting period will go around 3 years after your bankruptcy dismisses by the court to acquire USDA loans. In order to get qualified for FHA or VA home loans, you hardly need to wait for 2 years after your discharge.
What mortgage loan options do you have after your bankruptcy in order to know how long can I buy a house after chapter 7?
Surely you can choose to acquire any kind of mortgage loan. As there are no rules that permanently exclude you from acquiring any kind of home loan, as you have already gone through chapter 7. After meeting the waiting period, you can surely apply for your preferred home loan. An FHA home loan is easier to get if you have chapter 7 bankruptcy on your financial records because the FHA home loans have a shorter waiting period usually than other home loan kinds. So while having a record of chapter 7 bankruptcy, you don't have to wait as soon as you get discharges from your bankruptcy. Plus, FHA home loans have lower mortgage requirements than the government-backed loans.
The prime advantage of choosing an FHA home loan is the minimum credit score requirements. Therefore, the chapter 7 bankruptcy will negatively influence your financial profile for 10 years. This time, your credit scores will be much lower than before the chapter 7 bankruptcy. But you can buy a property on your own with FHA home loan with a credit score of 580. If you have lower credit score (lower than 580), then also you can acquire FHA home loan, yet you need to pay a down payment of at least 10%.
Conclusion:-
It's totally possible to get a mortgage loan after chapter 7 bankruptcy but the waiting period can vary on loan types as some home loans have 2 years waiting period while other holds more than 2 years on how long can I buy a house after chapter 7. Contact Real Estate Diary in order to know more about your loan choices.
