Arizona Foreclosure

Can you buy a home after Bankruptcy?

Did you lose your home to Bankruptcy? Do you want to own again, It's easier than you think. You probably have heard the myth that you can't buy a home for seven years. I'm here to tell you that myth is so wrong. You do need to know the discharge date of your bankruptcy.  

When you go to buy a new home we will use that event date to qualify you. So how long do you have to wait to buy another home? Well that depends on your situation, but most people will be able to buy again after Two years. The Federal Housing Administration (FHA) is a government agency that insures certain home loans, and its policy for qualifying for a home loan is very flexible. FHA will guarantee a home loan after a Bankruptcy when:

  • Twenty four months have passed since the actual day of your Discharge date.
  • If you have included a home into your bankruptcy, thn you will have to wait 36 months before you can buy using  FHA loan.

In addition to the above, individuals must meet the mortgage lender's criteria. This usually means showing a stable employment history, a manageable debt to income ratio, and a good credit score. Regarding your credit score, You will want to check your credit after the bank has foreclosed in Arizona on your home to make sure they are reporting to your credit correctly. We have been seeing were banks are making errors in reporting. You do not want to wait Two years to find out the bank is reporting incorrectly on your credit. Surprisingly, most clients are able to improve their credit scores quickly after a Bankruptcy. Your credit score is weighted heavily on recent events, However, the farther you are from your Bankruptcy, the better your score will become. Additionally, an absence of credit delinquencies and a solid history of on-time payments after your Bankruptcy will boost your credit score.