Can I Buy a House After Bankruptcy?

someone drawing a houseMany of our clients ask us whether they will be able to buy a new home after filing a personal bankruptcy and how long it will take to do so.

While there is no doubt that it will take some time to build up enough credit to take out a mortgage on a new home, with some patience and proper financial planning, you might be able to purchase a home sooner than you think.

Some factors that a mortgage lender will look at to determine your eligibility for a new mortgage are:

  • Credit score. While your bankruptcy filing will negatively impact your credit score, the quickest way to increase your credit score after a bankruptcy is to prove to lenders that you can be trusted to repay the money you owe them. Get a secured credit card and make the monthly payments on time. Pay all of your other bills on time.
  • Regular income level. Lenders look at your total salary and how long you have worked at your job. The longer you have been employed by the same employer, the better. Stability is important.
  • Down payment amount. Save for a down payment. Once you have filed bankruptcy, lenders will most likely require a significant down payment before giving you a mortgage.

So, to answer the original question, you can buy a home after bankruptcy. You may need to wait at least 2 years, but this will allow you to get your financial life on the right track. It will also give you time to save money to use toward making the down payment.

Please keep in mind that every bankruptcy matter is different. If you have questions about filing for bankruptcy protection and would like to schedule a no-cost consultation, please contact our office by completing the form on this website or calling us at  (954) 932-5377.


Thought Leaders in
Our Areas of Practice

As Featured In:
  • Law 360 Law 360
  • Bloomberg Law Bloomberg Law
  • Wall Street Journal Wall Street Journal