Ani’s Money Saving Tips 🙂
One of the biggest questions for those that are forced to file for bankruptcy is can they ever buy a house afterwards. The good news is yes. A bankruptcy or/and a foreclosure do not mean that you can never get a mortgage. Of course, a bankruptcy or/and a foreclosure may make the process more difficult.
You may have heard about certain waiting periods that you must wait out until you can get a mortgage after filing for bankruptcy. These wait times vary by loan type. For an FHA loan or a VA home loan, the wait time is two years. For a Conforming, that is a Fannie or Freddie Mac mortgage, the wait time after filing a bankruptcy is four years. For a USDA home loan, the wait time is three years. These are the standard wait times, but you may qualify for one even sooner depending on circumstances. Almost all of the loan types offer exceptions to waiting periods for “extenuating circumstances” and other one time events, particularly those that were outside of your own control and caused high amounts of income loss.
Almost all of the loan types offer exceptions to waiting periods for “extenuating circumstances” and other one time events, particularly those that were outside of your own control and caused high amounts of income loss.
The waiting periods are a bit different in concern for foreclosures. The standard waiting period for a conforming loan after you had a home foreclosed is usually seven years. If your bankruptcy included a foreclosure, you may be able to qualify sooner. A lot of this depends upon the date of your foreclosure. There are different rules and standards for assessing your wait time depending on if the foreclosure happened before or after your bankruptcy. If your foreclosure happened before your bankruptcy, then you’re waiting period begins at your bankruptcy discharge date. If your foreclosure happened after your bankruptcy, then it may depend upon circumstances. The FHA waiting period is three years.
For those that took out a government-back loaned like an USDA, FHA, VA, a student loan or a tax debt and failed to pay it back, you will probably have ended up in the Credit Alert Verification Reporting System. If you are in this system, the only other way to get an additional government-backed loan is to make some sort of resolution to get out of the database. There are many ways to qualify to get out of the database. An example would be if you failed to pay back a student loan, but eventually set up a payment plan to pay back the loan. The process of appealing to be removed from the CAIVRS database can be very time-consuming, but often many people find that it is the only way to move forward.