Can I Purchase a Home After Foreclosure or Bankruptcy?

Life happens to us all. Bankruptcy and foreclosure aren’t anything to be ashamed of and they shouldn’t hold you back.?

Unfortunately what should happen and what does happen often don’t match.?

If you’ve experienced a situation or event that hurt you financially, causing you to file for bankruptcy, foreclosure, or both but you want to purchase a home in 2024, there’s hope.?

I can help.

Options for Purchasing a Home After Bankruptcy or Foreclosure

There are many options for purchasing a home after bankruptcy or foreclosure. The key is the length of time or “seasoning” of the negative credit event.?

Seasoning means the time that has passed since your bankruptcy or foreclosure.

Let’s take a look at some of the most popular programs.?

Conventional Loan

To obtain a conventional loan after a foreclosure you must have 7 years of seasoning since the foreclosure was completed.?

The same is true if you filed a Chapter 7 bankruptcy. You must have 7 years of seasoning since the bankruptcy was discharged.?

If you filed a Chapter 13 bankruptcy you must have 2 years seasoning since the discharge date or 4 years from the dismissal date.?

IMPORTANT: You’ll need to re-establish your credit profile and you must avoid negative credit after bankruptcy or foreclosure.

FHA Loan

To qualify for an FHA loan you must have a three-year seasoning period from the date the foreclosure was completed.?

If you filed a Chapter 7 bankruptcy there must be a two-year seasoning from the discharge date.?

If you filed a Chapter 13 bankruptcy you must be at least 12 months into your repayment plan and have made all payments on time. You will also need to get permission from the court.

VA Loan

A VA loan requires a two-year seasoning period for a prior Chapter 7 Bankruptcy or Foreclosure.?

If you filed a Chapter 13 bankruptcy you must be at least 12 months into your repayment plan and have made all payments on time.?

You’ll also need to get permission from the court.

IMPORTANT: Even if your prior foreclosure was on a VA Loan there is a good chance you will still qualify for a new VA Loan.

Non-QM Loans (How to Qualify Within a Year of Bankruptcy or Foreclosure)

These are non-traditional loans that allow potential home buyers to purchase a home with less than 12 months of seasoning from a Bankruptcy or Foreclosure.?

Additionally, they allow for alternative income documentation instead of paystubs and tax returns - which is often ideal for self-employed borrowers. To learn more about your options click HERE.?

Next Steps

The bottom line is if you have had a prior bankruptcy or foreclosure, don’t let that discourage you from seeing what your options are.?

The above information is general guidelines but not all-encompassing.

Everyone’s situation is different.?

If you’re interested in learning more about purchasing a home and want to know ALL your options in 2024, I’m happy to help!

Click HERE to contact me for a FREE consultation.?

I’ll put my 20 years of five-star experience to work to qualify you or help you GET ready for pre-qualification.?