Among the more common misconceptions about bankruptcy is that it comes without consequences. Many in Hernando County might see it as an easy way for you to get away with not having to pay your bills. It might even be tempting for you to view it as a more attractive option than having to submit to the harsh demands of your creditors. Be you should know that bankruptcy, for all of the financial protection it offers, can indeed have a negative impact. This is mostly felt in your credit rating, which could hinder your ability to borrow money for important purchases such as buying a home. Indeed, how long does it take to qualify for a mortgage after bankruptcy is one of the more common questions posed to us here at The Day Law Office.
Unfortunately, there is no easy answer to that question. According to information shared by LendingTree.com, the standard waiting periods for qualifying for different mortgage programs following you having filed for the various types of bankruptcy are as follows:
- Chapter 7: 4 years for a conventional mortgage, 3 years for a USDA loan, 2 years for a loan through the VA or FHA
- Chapter 13: 2 years from the date of discharge (4 years for a dismissal) for a conventional mortgage, 1 year for a loan through the VA, FHA or USDA
- Chapter 11: 4 years for a conventional mortgage
It may be prudent, however, to wait even longer than these time periods before seeking a mortgage. The further you get away from your bankruptcy case, the more your credit score improves. Thus, the interest rate you might get a couple of more years after the standard waiting period will likely save you much more over the life of your home loan. More information about moving on after bankruptcy can be found throughout our site.