How To Get A Home Loan After Chapter 7

Also, you will still likely need to wait two to four years after a bankruptcy to apply for a mortgage loan, even with a co-signer. Can I get a VA loan one year after Chapter 7?

But be prepared to wait a while before you’ll get approved. “Bankruptcy will not stop you from making a large purchase, like a home, in the future. So yes, it is possible to obtain an FHA home loan after Chapter 7 bankruptcy,” says Jeremiah Heck, a debt and bankruptcy attorney.

Chapter 7 bankruptcy will likely eliminate your mortgage debt, but this means you’ll have to give up your home unless it qualifies for an exemption. Your lender still has the right to foreclose on the home to recover as much of the original mortgage amount as possible. With Chapter 13 bankruptcy, you’re able to retain assets like your home.

Post-bankruptcy, applicants must typically waitbefore qualifying for a home loan. If you file a Chapter 7, the waiting period after its discharge or dismissal is generally two years for government loans (like FHA mortgages) and four years for conventional (non-government) loans.