Will I ever be able to buy a house again? That’s a common question clients ask when faced with a foreclosure or bankruptcy, or both. Fortunately, the answer is yes, but . . . Depending on the circumstances and type of loan, a person who has filed a chapter 7 bankruptcy may be eligible for a new home loan as soon as 2 years after receiving their discharge for a FHA loan, and 4 years after receiving a discharge for a conventional loan.
If a person has a foreclosure on their record, the news is not nearly as good, at least for a conventional loan, which can require a seven year waiting period from the date of the foreclosure. If a person qualifies for a FHA loan, the waiting period is only three years.
Of course, a person also has to demonstrate that they otherwise qualify for a home loan by showing a sufficient down payment and proof of income. But, there is hope for those who have lost their home to again one day enjoy the American dream.
Please click here for the detailed list of qualifications: Foreclosure chart