Filing for bankruptcy is a difficult but sometimes necessary step toward financial freedom. If you’ve completed your bankruptcy or are in the process, you might wonder: Can I own a home again? The answer is a confident yes—and with a thoughtful approach, you can be well on your way to homeownership.
At The Dunne Law Offices, we understand the challenges and the hope that comes with rebuilding your financial life. Buying a home after bankruptcy may seem daunting, but it’s absolutely achievable with the right steps.
Here’s your straightforward guide to owning a home again after bankruptcy.
Step 1: Understand the Timeline to Homeownership
Your path to buying a home depends largely on the type of bankruptcy you filed and the mortgage loan program you pursue.
Typical waiting periods after bankruptcy discharge or dismissal:
- FHA Loans: 2 years after Chapter 7 discharge; 1 year into Chapter 13 with court approval
- VA Loans: 2 years after Chapter 7 discharge; 1 year into Chapter 13 with approval
- Conventional Loans: 4 years after Chapter 7 discharge; 2 years after Chapter 13 discharge
These timelines can vary depending on your lender and your individual credit profile.
Step 2: Rebuild Your Credit Profile
Bankruptcy impacts your credit, but it doesn’t have to define it.
- Start small: Apply for a secured credit card or credit-builder loan.
- Pay on time: Make all payments promptly to establish a positive record.
- Keep balances low: Aim for less than 30% utilization on revolving credit.
- Check your credit report: Review it for accuracy and dispute any errors.
Patience and consistency here will help you improve your score over time.
Step 3: Save for Your Down Payment
Even if you qualify for loans with low or no down payment requirements, having some savings is a smart move.
- It can lower your loan costs.
- It shows lenders financial responsibility.
- It helps cover closing costs, inspections, and moving expenses.
Consider setting up a dedicated savings account to build this fund.
Step 4: Find a Mortgage Lender Experienced With Bankruptcy Borrowers
Not every lender is equipped to work with clients fresh from bankruptcy. Seek out lenders who:
- Understand bankruptcy timelines and requirements
- Offer FHA, VA, or USDA loan programs geared for rebuilding credit
- Provide clear, upfront advice about your mortgage options
Getting pre-approved helps you know your budget and strengthens your offer when you find the right home.
Step 5: Get Legal Guidance, Especially if You’re Still in Chapter 13
If you are still making payments under a Chapter 13 plan, you must seek the bankruptcy court’s permission before taking on new debt like a mortgage.
At The Dunne Law Offices, we can:
- File the necessary motions on your behalf
- Work with the trustee to ensure your plan stays on track
- Help negotiate terms that fit your budget
This legal step is critical to avoid delays or complications in your home purchase.
You Can Own a Home Again—We’re Here to Help
Your bankruptcy was a fresh start, not the end of your financial journey. Owning a home is part of rebuilding stability and security.
At The Dunne Law Offices, we specialize in helping clients just like you navigate post-bankruptcy life—including buying a home again. We’re ready to answer your questions, help you plan your next steps, and support your path to homeownership.
Ready to take the next step?
📞 Call us at (215) 551-7109
🖥️ Visit ThePhiladelphiaBankruptcyAttorney.com to schedule your free consultation today.