Can I Buy a House After Bankruptcy?

Before the recent credit crisis, it was possible to qualify for a  mortgage on the day someone obtained their discharge from the bankrupty court.   The underwriting standards of mortgage lenders have certainly tightened in the last year or so but, even in the wake of the recession, you can secure a mortgage and buy a house about two years after filing for bankruptcy if you have established healthy credit habits. Even if you can only find higher mortgage rates initially, you will be able to refinance your mortgage as time goes by and as your credit continues to improve. FHA loans are the most common choice for those who have recently closed a bankruptcy case – as long as you have a one-to-two year history of on-time payments, you may qualify for the government program.

As mentioned above, one of the keys to obtaining a mortgage within a reasonable time after your bankruptcy is beginning to re-establish credit after your discharge.  Obtaining and responsibly using a secured credit card, gas company card or department store card starts the process of adding positive tradelines to your credit report.  Obtaining an auto loan is another way to begin re-establishing credit.  See our pages on Can I obtain a car loan after bankruptcy? and Can I obtain credit after bankruptcy? for more information.