Bankruptcy can seem like the end of the world, or at least the end of some big dreams, like owning a home. But the fact is, you may be able to qualify for a mortgage as soon as a year after your bankruptcy is discharged.
While mortgage waiting periods vary by type of mortgage and type of bankruptcy, repairing your credit and getting your financial footing back are key to getting a mortgage that works for you.
That said, the ins and outs of getting a mortgage after bankruptcy can be confusing. Besides the variety of mortgages available and their different rules, there are also different types of bankruptcy.
And then, there’s you. What led to your bankruptcy, how have you dealt with your finances since then and what are you willing to do going forward?
Everyone’s situation is different, but the best way to get on solid footing and get a mortgage is understanding how it works and where you fit in.
While there is a waiting period after a bankruptcy is discharged before you can apply for a mortgage, it doesn’t mean you have to wait to do the work that’ll get you there.
Bankruptcy means a mortgage may cost you more in interest rates, but there’s also good news. Repairing your credit and increasing your credit score after bankruptcy can ease the pain and get you your dream house.