How Soon Can I Buy a House After Bankruptcy?

You can buy a house after a Walworth County bankruptcy. The most common types of bankruptcy are Chapter 7 bankruptcy and Chapter 13 bankruptcy. How soon you can buy a house after bankruptcy depends on the type of bankruptcy filed and the type of mortgage loan sought. The various types of mortgage programs each have different requirements. Most financial institutions have their own mortgage loan requirements as well.
Wait to buy a house after Walworth County bankruptcy

Buying a Home After a Walworth County Chapter 7 Bankruptcy

Once your Walworth County Chapter 7 bankruptcy is discharged, the clock starts. The typical wait time for a conventional loan is four years after a Chapter 7 bankruptcy discharge. There is a two year waiting period for FHA or VA loans after a Walworth County Chapter 7 bankruptcy discharge.


Buying a Home After a Walworth County Chapter 13 Bankruptcy

If you received a discharge from a Walworth County Chapter 13 bankruptcy filing, you will generally be eligible for a conventional loan two years after the discharge date. A FHA loan or a VA loan can usually be obtained much sooner.


Buying a Home the First Year After a Walworth County bankruptcy

There are some banks that will lend within the first year after a Walworth County bankruptcy discharge. However, there is a catch. You will pay a higher interest rates and will need to make a much larger down payment than the typical buyer. If you save for a down payment, obtaining a mortgage should not be a problem. (Remember: The bigger the down payment, the better.)

If you are unhappy paying the higher interest rate, but need to obtain a home now, think of the loan as short-term. Remember that you can always ask the bank to refinance into a better interest rate for you. If you have been faithfully making on-time payments for the last couple years, most banks will not have a problem refinancing the loan and lowering the interest rate for you, depending on the current interest rate.


The Best Option When Buying a House After a Walworth County Bankruptcy

Your best bet is to wait at least two years before buying a house after a Walworth County bankruptcy discharge. The mortgage terms and interest rate will be better if you wait. Waiting two years gives you enough time to prepare for a loan. You will have time to rebuild credit, maintain a good debt-to-income ratio, and save money in the bank for a big down payment.


Contact Our Walworth County Bankruptcy Attorney

If you have any questions regarding bankruptcy or home ownership, feel free to contact our Walworth County bankruptcy attorney. Our Walworth County bankruptcy attorney can offer the best advice based up your particular circumstances. You can reach our Walworth County bankruptcy attorney by phone at 262-725-0175 or by email via our website’s contact page. Wynn at Law, LLC has bankruptcy offices located in Delavan, Lake Geneva, Salem, and Muskego.


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*The content and material on this web page is for informational purposes only and does not constitute legal advice.

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