How long can I buy a house after chapter 7? If this is your concern, let me tell you it might be difficult for you to buy a house after chapter 7, yet bankruptcy is not permanent. In addition to this, sure it’s possible for you to buy a house after chapter 7. You just need to take some steps in order to attain your goal. Let’s take a dig into those steps one by one!
The most usual form of bankruptcy is chapter 7
Chapter 7 is the most general form of bankruptcy. During chapter 7, the court sabotages your debts, plus your credit profile will considerably take an immense hit. Therefore, if you are someone who has suffered from chapter 7, needs to buy a home and questioning about how long can I buy a house after chapter 7? The straight answer is you at least have to wait for 4 years after dismissing your bankruptcy in order to get qualified for the most common loans that are conventional loans because government-backed loans are quite difficult for you to acquire. Or otherwise wait for over 3 years after your chapter 7 bankruptcy discharge in order to acquire USDA home loans. Consequently, if you want to acquire VA home loans or FHA home loans, you just have to wait for over 2 years after your chapter 7 bankruptcy discharges.
Steps you need to take for “how long can I buy a house after chapter 7”
1) Improve your credit scores
Chapter 7 bankruptcy can actually lower down your credit profile. Therefore, it’s possible for you to get a home loan along with your chapter 7 bankruptcy, yet lenders have their own requirements, and it’s important for you to meet their expectations. Hence, this will take some time, but it will be worth waiting because it will increase your chances of getting the lowest rates. Instead of this, you at least require a credit scoring of 580 in order to get qualified for conventional loans.
2) Reply to lenders inquiries
After submitting the pre-approval application, all the things are in the lender’s hand. Since the lender is authorized to review the incomes statement, credit stability, or the debts and assets of the borrower, and if they feel you are a deserving candidate, he will send you the pre-approval sooner. Thus, a pre-approval will help you begin the home buying journey in order to how long can I buy a house after chapter 7. Make sure to respond to the lender quickly as he will surely question you about your financial condition as this is quite common after bankruptcy. Be honest with the lender and respond to his queries quickly in order to know how long can I buy a house after chapter 7.
How Long Can I Buy A House After Chapter 7? You can surely buy a house after chapter 7. Yet, you need to wait until your chapter 7 bankruptcy gets dismissed. So, make sure you have mentally prepared yourself as you need to wait for at least 3-4 years depends on the loan type. For more quality information, contact Real Estate Diary.