Buying a Home After Bankruptcy

You can buy a home after bankruptcy! In tough economic times, many clients worry about the impact of filing bankruptcy on their ability to purchase a home in the future, but subject to several guidelines, a debtor can obtain a mortgage and buy a new home after bankruptcy.

Federal Housing Administration Guidelines

The Federal Housing Administration (FHA) has set out guidelines on this subject.  The Guidelines have a required waiting period for those who have filed bankruptcy.  If a debtor has filed a Chapter 7 bankruptcy, the debtor must wait two years from the date of discharge before applying for an FHA loan.  If a person has filed a Chapter 13 bankruptcy, he can apply for an FHA loan after completing one year of his Chapter 13 payments.  The Chapter 13 debtor must also get permission from the bankruptcy court before entering into a new mortgage loan.

Fannie Mae Guidelines

Fannie Mae also has a set of Guidelines that address waiting periods after bankruptcy.  For a Chapter 7 debtor, the debtor must wait four years from the discharge or dismissal of his bankruptcy case.  A Chapter 13 debtor, on the other hand, must wait two years from the date of discharge, or four years from the dismissal of the case.  In both Chapter 7 and Chapter 13 cases, there is an exception for extenuating circumstances that would reduce the waiting period.  These exceptions are rarely granted.

In the waiting period, it is a good idea for debtors to take steps to begin rebuilding their credit in order to qualify for a mortgage and to get a more attractive interest rate.  It is also important to remember that just because you can apply for a mortgage after these waiting periods run, it is not always the best idea to do so, depending on your individual circumstances.  Sometimes renting for a longer period and saving for a down payment or rebuilding your credit score may be more beneficial.

If you have questions about filing for bankruptcy, please contact one of our offices and set up a free consultation today.

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Bond & Botes Law Offices

At Bond & Botes, we now offer full service bankruptcy consultation and filing over the phone or by video from the comfort and safety of your home or office. Please call 1-877-581-3396 or click here to setup your free phone or video consultation.

The lawyers at the Bond & Botes affiliated offices serve clients at offices in Anniston, Birmingham, Mobile, Montgomery, Opelika, Decatur, Huntsville, Florence, Haleyville and Gadsden, Alabama; Vicksburg, Hattiesburg and Jackson, Mississippi. Read our disclaimer here. You can view our Privacy Policy here.

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2107 5th Avenue North
Age-Herald Building
Birmingham, Alabama 35203
Phone: (205) 802-2200


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Birmingham, AL 35244
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121 S. Court Street
Florence, AL 35630
Phone: (256) 760-1010


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Huntsville, AL 35801
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Montgomery, AL 36104
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605 Bank Street
Decatur, AL 35601
Phone: (256) 355-2447


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Haleyville, AL 35565
Phone: (205) 486-3580


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430-B Chestnut Street
Gadsden, AL 35901
Phone: (256) 485-0195


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216 South 8th Street
Opelika 36801
Phone: (334) 887-7666


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1302 Noble St #2C
Anniston, AL 36201
Phone: (256) 344-3559


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200 Second Avenue SW
Cullman, AL 35055
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5760 I-55 North, Ste 100
Jackson, MS 39211
Phone: (601) 353-5000


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607 Corinne St, Ste B8
Hattiesburg, MS 39401
Phone: (601) 264-7200


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1212 Farmer Street
Vicksburg, MS 39180
Phone: (601) 353-5000

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