If you have been on the unfortunate end of financial hardship that lead to a Chapter 7 bankruptcy you might be wondering if you will ever be able to own a home again. The short answer is, yes. However, there are some considerations to be made about borrowing again in the future.
If you had a conventional home loan discharged in a Chapter 7 bankruptcy there is a waiting period for applying for a new mortgage. Typically, the FHA requires a two year waiting period before any new loan can be approved. Some banks may require a three year waiting period. This waiting period begins from the date of the bankruptcy discharge, not the filing date. This distinction is important for having accurate timing of the new mortgage application. At the end of the waiting period you can apply for a government-backed loan.
While you may be thinking waiting three years for another home loan is a long time, consider it time to make strides in rebuilding your credit. After all, you have the best chance at a loan with favorable interest rates if your credit score has improved. Your Dallas bankruptcy attorney can walk you through the Chapter 7 process, as well as help you with your credit recovery efforts.