If you’ve recently completed a bankruptcy, you may be wondering if homeownership is still in your future. Here’s the good news:
Yes, you can absolutely buy a house after bankruptcy.
In fact, with the right guidance and a solid plan, many people become homeowners just a few years after filing.
At Dunne Law Offices, we’ve helped thousands of individuals and families not only navigate bankruptcy—but come out stronger, more financially secure, and ready to thrive. That includes helping clients understand the path to buying a home.
Let’s break it down step by step.
1. Know the Waiting Periods
The type of bankruptcy you filed (Chapter 7 or Chapter 13) and the type of mortgage you’re applying for (FHA, VA, USDA, or conventional) will determine how soon you can buy.
Here are general guidelines:
- FHA Loan:
- 2 years after Chapter 7 discharge
- 1 year into a Chapter 13 repayment plan (with court approval and on-time payments)
- VA Loan:
- 2 years after Chapter 7
- 12 months into Chapter 13 with approval
- Conventional Loan:
- 4 years after Chapter 7 discharge
- 2 years after Chapter 13 discharge
📌 Every lender is different, so these timelines may vary slightly. Credit history and income stability can also shorten or lengthen the wait.
2. Rebuild Your Credit, One Step at a Time
After bankruptcy, your credit score won’t stay low forever—but you need to take action. Here’s how to start improving it:
- Apply for a secured credit card and make small monthly purchases you can pay off in full.
- Keep credit utilization below 30% of your available limit.
- Make every payment on time, whether it’s your phone bill, utilities, or a car loan.
👉 The more positive history you build, the stronger your mortgage application will be.
3. Save for a Down Payment
While some loan programs allow for low or even zero down payments, the more you save, the better your loan terms may be.
Tips to build your down payment fund:
- Set up automatic transfers to a savings account.
- Consider a side gig or part-time job.
- Use your tax refund or any windfall to boost savings.
💡 Bonus: A bigger down payment shows lenders that you’re committed and financially disciplined—especially important after bankruptcy.
4. Get Pre-Approved—and Choose the Right Lender
Not all lenders understand the nuances of post-bankruptcy borrowers. Look for those who:
- Specialize in FHA, VA, or USDA loans
- Offer credit counseling or financial education
- Respect your financial journey, not judge it
Before you shop for a home, get pre-approved. This shows sellers you’re serious and helps you understand exactly how much house you can afford.
5. Work With a Bankruptcy-Savvy Legal Team
Buying a home after bankruptcy isn’t just about finances—it’s also about navigating the legal and procedural requirements that may still apply to your case.
If you’re in an active Chapter 13 case, you’ll need:
- Court approval to take on new debt
- A motion filed with the bankruptcy court
- A demonstration that the mortgage is affordable and reasonable
At our firm, we walk clients through this process every day. From court motions to lender coordination, we’ll make sure nothing stands in your way.
Your Second Chance at Homeownership Starts Here
You’ve done the hard work of getting through bankruptcy. Now it’s time to start building the life you deserve—and that includes having a home to call your own.
At The Law Office of Stephen M. Dunne, Esq., we believe your bankruptcy was not the end of your financial story—it was a fresh start. We’re here to guide you through every step of what comes next.
📞 Call us today at (215) 551-7109
🖥️ Schedule a free consultation at ThePhiladelphiaBankruptcyAttorney.com
Let’s turn your financial reset into a new address—and a new beginning.