Can I purchase a home once my bankruptcy case is over?
Purchasing a home, obtaining a mortgage, financing for a house is definitely available after a bankruptcy cases filed. The typical time period that one has to wait to qualify for a decent mortgage is two years. If you can wait two years, you’re going to have a decent down payment hopefully and you are going to get a decent rate. Now, your rate is not going to be as good as someone who had perfect credit and who never had to file for bankruptcy. However, you can start with a halfway decent rate two years after filing your bankruptcy and then look to refinance a year or two or three down the road as your income increases and as your credit history improves.
The more you do to enhance your credit after a bankruptcy filing will pay dividends for you in terms of lower interest rates in the future. I recommend three trade lines after your bankruptcy cases filed. One trade line could be a vehicle purchase. Another one could be a furniture purchase. And another one could be some sort of line of credit or secured credit card that eventually turns into an unsecured card.
If you can maintain a good credit payment history after your bankruptcy case is filed, then within two years, you will qualify for a decent mortgage. If you struggle with debt after your bankruptcy case is filed, then you’re going to find it difficult to get good offers for credit and it will be difficult for you to qualify for a decent mortgage. So it’s very important, when you get your fresh start on a Chapter 7, you take advantage of that fresh start and you don’t do anything that’s going to harm your credit report. If you have a utility bill, you have to pay it on time. If you have a medical bill, you have to make sure you pay that as well. Make sure that you are making all your timely payments after your bankruptcy case is filed so that no new negative information can go on your credit report after your case is filed. This will improve your ability to get credit in the future, including purchasing a home two years after filing.