Can I Buy a House After Bankruptcy?

Can I Buy a House After Bankruptcy?

Many people are struggling to find their way back to financial stability. One of the few options to start over more intelligently is to file for Bankruptcy.

Filing for bankruptcy oftentimes is a big decision because many wonder what affects it may have on their financial decisions in the future, like their ability to purchase a home for the first time.

The short answer is yes, you absolutely can.

Does filing bankruptcy affect my credit score?

Filing bankruptcy can have a severely negative impact on your credit score. A Chapter 7 bankruptcy will remain on your credit reports and affect your credit scores for 10 years from the filing date; a Chapter 13 bankruptcy will affect your credit reports and scores for seven years.

However, your credit fluctuates based on your credit usage and could improve if you pay your bills timely. Payment history makes up a significant chunk of your credit score, so it’s important to avoid late payments.

Having filed for bankruptcy does make it challenging for any bank institution or lender to qualify you for a mortgage.

Here are a few steps you are able to take to be able to qualify for a loan and be able to be a homeowner.

  • Work on consistently paying your bills on time to have a food payment history.
  • Work on increasing your credit score to an average score as per FICO, a credit score of at least 620 is considered to be average.
  • Work on allocating towards a down payment of at least 10-20%.

What type of loan may I be eligible for after bankruptcy?


  • Conventional Loan
  • FHA Loan
  • VA Loan (if applicable)
  • USDA Loan

These loans have different requirements, such as waiting periods, credit score, and down payment percentages.