Buying a Home after Filing for Bankruptcy - The Rules. A common question comes to mind for those folks who are thinking about filing for bankruptcy, or already have... "When can I purchase a home (or refinance) after filing for Bankruptcy?" Here are some basic qualification guidelines for various types of mortgage loans:
Conventional loans -
If purchasing, after 4 years with a 680 credit score or higher. The bankruptcy will no longer count against you after 7 years. However, if you show delinquencies after a bankruptcy, you will mostly likely be considered in a higher risk category and could possibly still be denied a loan.
If refinancing, you can refinance as a rate and term after a minimum of 4 years, but no cash out is allowed. Rate & term refers to mortgage liens such as a first mortgage, second mortgage (if used to purchase the home) and property tax liens.
USDA Zero Down -
After 3 years
VA -
After 1 year, if extenuating circumstances has occurred such as loss of employment or a medical issue, otherwise, after 2 years.
FHA -
After 1 year, if extenuating circumstances has occurred such as a death of a wage earner or a serious illness, otherwise, after 2 years with no delinquencies since the bankruptcy.
A bankruptcy will remain on your credit report for 10 years after discharge date.
Information provided by Ambient Home Lending ~ Southern Oregon
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