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.