Sadly, you may have lost your family home when filing for Chapter 7 bankruptcy if you could not protect its equity with a bankruptcy exemption. But once your bankruptcy experience is finally in your past, you may want to get your life back to normal as soon as possible. This may start with leaving your rental unit and moving your family back to a home or your own. However, you must understand that this may be no easy feat. Read on to discover how long after bankruptcy until I can buy a house and how a seasoned Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C. can help your financial portfolio look better in a lender’s eyes.
How long after bankruptcy until I can buy a house?
Generally speaking, you may have to wait anywhere between two to four years after the discharge of your Chapter 7 bankruptcy case until you can buy a house. But if you underwent a Chapter 13 bankruptcy case, this timeline may be dependent on the duration of your repayment plan the New York State bankruptcy court approved. That is, it may take you anywhere between three to five years to complete your repayment plan. After this, it may be naturally easier to obtain a mortgage loan than it would be after a Chapter 7 bankruptcy case.
But overall, this may all be based on the type of mortgage loan you are seeking in the first place. For example, you may apply for a Federal Housing Administration (FHA) loan within two years of your Chapter 7 bankruptcy discharge date, but you may not even have to wait until your Chapter 13 bankruptcy case is discharged. On the other hand, you may have to wait closer to four years for a conventional loan after your Chapter 7 bankruptcy discharge date, or two years after Chapter 13.
How can I rebuild my credit in the meantime?
You may take this two-year or longer waiting period after bankruptcy to rebuild your credit. This is so you do not have to overcome any other barriers when the time is right to apply for a mortgage loan. Without further ado, the following are examples of small actions that may make big changes to your credit score:
- You may make timely payments towards debts that were not discharged in your bankruptcy case.
- You may apply and secure new lines of credit and make payments timely and in full.
- You may apply and secure a credit builder loan and make payments timely and in full.
- You may monitor your credit score monthly and ensure it accurately depicts your credit history.
- You may become an authorized user on someone else’s credit card with a positive credit history.
In conclusion, there is far more to explain than this blog has only begun to cover. For more information, please get in touch with a competent Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C. We look forward to collaborating with you.
