You’ve taken the brave step to file for bankruptcy. You’ve worked hard to rebuild. And now, you’re asking a very common—and very important—question:
Can I buy a home after bankruptcy?
The answer is a resounding: Yes, you can.
At The Dunne Law Offices, we help clients every day prepare for life after bankruptcy. That includes laying the groundwork to become a homeowner again. Whether you filed under Chapter 7 or Chapter 13, homeownership is still within reach—with the right plan, patience, and guidance.
Let’s walk through how to make it happen.
Step 1: Understand the Waiting Periods
Your eligibility to apply for a mortgage depends on two things: the type of bankruptcy you filed and the type of loan you want.
Here’s a general breakdown:
- FHA Loans:
- 2 years after Chapter 7 discharge
- 1 year into a Chapter 13 repayment plan (with trustee approval and on-time payments)
- VA Loans (for eligible veterans):
- 2 years after Chapter 7
- 12 months into Chapter 13 with permission
- Conventional Loans:
- 4 years after Chapter 7 discharge
- 2 years after Chapter 13 discharge
Each lender is different, and exceptions do exist—especially if you can demonstrate financial hardship followed by responsible financial behavior.
Step 2: Rebuild Your Credit the Smart Way
Your credit score plays a big role in mortgage approval and interest rates. The good news? Bankruptcy is not a permanent scar. Most of our clients begin seeing credit improvements within 12 to 18 months.
Here’s how to strengthen your credit profile:
- Apply for a secured credit card and pay it off monthly
- Keep credit balances low—ideally under 30% of your limit
- Pay all bills on time, including utilities and rent
- Consider a small credit-builder loan through a credit union or community bank
Pro Tip: Monitor your credit report regularly and dispute any errors.
Step 3: Save for a Down Payment and Costs
While some loans (like FHA or VA) allow for low down payments, having even a small cushion shows lenders you’re serious. It also helps cover:
- Closing costs (typically 2–5% of home price)
- Home inspections and appraisals
- Moving expenses or early repairs
Set a monthly savings goal. Every dollar saved brings you one step closer to homeownership.
Step 4: Get Pre-Approved by the Right Lender
Not all lenders understand the bankruptcy process—and not all are eager to work with someone who’s filed. That’s why it’s crucial to find mortgage lenders familiar with post-bankruptcy borrowers.
Benefits of pre-approval:
- Helps define your price range
- Shows sellers you’re a serious buyer
- Flags any issues early so you can fix them before making offers
Need help finding the right lender? Our office works closely with mortgage professionals who specialize in clients coming out of bankruptcy.
Step 5: If You’re Still in Chapter 13, Get Court Permission
Still in an active Chapter 13 repayment plan? You’ll need permission from the bankruptcy court to incur new debt.
We’ll help you:
- File the necessary motion to request permission
- Coordinate with your trustee
- Demonstrate that the mortgage is affordable and doesn’t jeopardize your plan
We’ve helped many clients through this process—and we’re here to make it as smooth as possible.
Ready to Own Again? Let’s Build the Future You Deserve
Bankruptcy doesn’t define your future—it prepares you for it.
At The Dunne Law Offices, we’re committed to helping you move forward confidently. Whether you’re six months post-discharge or still finishing up your Chapter 13 plan, we’re here to help you chart your path toward homeownership.
📞 Call (215) 551-7109 today to schedule a free consultation
🖥️ Or visit ThePhiladelphiaBankruptcyAttorney.com to get started
A fresh financial start is just the beginning. Let’s turn it into a new home.