Filing for bankruptcy can be the best financial decision for your situation, but it does not always look good to lenders. Mortgage lenders will want to see you rebuild your credit and avoid debt issues before they will provide you a loan.
According to FindLaw, most lenders will expect you to wait for one to two years after your bankruptcy discharge before applying for a mortgage loan.
Even once waiting after your discharge, you should be aware the bankruptcy will impact your mortgage options. You may have a harder time finding a lender who will give you a loan. You also may face higher interest rates or need to have a larger down payment.
You also need to have a good credit score. All programs and lenders will have a minimum credit score you must have. Some programs may be as low as 500, but after your bankruptcy, you may need to work to increase your score enough to qualify.
Conventional loans may require a longer waiting period. The shortest option is usually an FHA or VA government-backed loan. These programs provide some protection for the lender, which is why the waiting period is shorter.
A conventional lender will usually require at least four years between your application and the bankruptcy discharge.
If you wish to buy a home after bankruptcy, you may want to start by talking to a lender about the requirements. This will give you goals to work towards and ensure you have a better chance of approval when you do apply for the mortgage.