Getting a Mortgage After Bankruptcy

Can I Get a Mortgage After My Bankruptcy Is Finalized?

Yes. Contrary to popular belief, bankruptcy doesn’t prevent you from financing necessary assets like a house or car.

Bankruptcy may negatively impact your interest rates and limit your options, but getting a mortgage is by no means impossible. After waiting the allotted amount of time, you may apply for a Federal Housing Authority (FHA) loan, which is more forgiving of lower credit scores and allows relatively small down payments, or you can apply for a mortgage elsewhere.

How Long Do I Have to Wait to Get a Mortgage After Bankruptcy?

If you filed under Chapter 7, you have to wait until 2 years after your official discharge date (not your initial filing date). You may be able to circumvent this rule and apply for a mortgage after 1 year if your bankruptcy was not your fault and you can prove that your bankruptcy was imposed upon you by outside forces.

If you filed under Chapter 13, you must be at least 1 year into your repayment plan and obtain court approval in order to receive an FHA mortgage loan. You don’t have to wait until you have completed your multi-year repayment plan in order to purchase a home. However, you may not be able to get a mortgage if paying it off requires you to reduce your agreed-upon payments, though it all depends on how you make your case and who is representing you.

Our Knowledgeable, Experienced Bankruptcy Attorneys Serve Marietta, Cobb County, and the Metro-Atlanta Area

If you’re unsure what to do regarding mortgages, car loans, or other major purchases or debts following your bankruptcy, the best thing you can do is connect with an experienced bankruptcy attorney. We can help you ensure your bankruptcy doesn’t keep you from taking important steps toward home ownership and a bright future.

Call Busch, Reed, Jones & Leeper, P.C. today and access the reliable legal counsel you need to make informed decisions following your bankruptcy. Our Marietta bankruptcy lawyers are here to serve you before, during, and after bankruptcy in order to set you up for future financial success and long-term freedom from debt.

Call (770) 629-0154 today or send us an email to receive a free case review.