How Long After Filing Bankruptcy Can You Buy A House? by Daniel Straffi

How Long After Filing Bankruptcy Can You Buy A House? by Daniel Straffi

Filing for bankruptcy can feel like a setback, but it doesn’t mean homeownership is out of reach. In this video, we cover the key steps to buying a house in New Jersey after filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy. We discuss waiting periods, mortgage options, and strategies to improve your credit score to qualify for a home loan.

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If you’re considering buying a home after bankruptcy discharge or dismissal, understanding the right timeline and financial steps is essential. We’ll walk you through mortgage programs like FHA loans, VA loans, USDA loans, and conventional loans, outlining their credit score requirements, down payment expectations, and debt-to-income (DTI) ratio limits. You’ll also learn about down payment assistance programs in New Jersey, which can help reduce upfront costs.

What You’ll Learn in This Video:
-The difference between Chapter 7 and Chapter 13 bankruptcy and how each affects your mortgage eligibility
-The waiting period for different loan types after bankruptcy
-How to rebuild credit through secured credit cards, personal loans, and on-time payments
-Why checking your credit report and disputing errors can improve your approval chances
-How lenders evaluate income, employment history, and assets after bankruptcy
-The role of Straffi & Straffi Attorneys at Law in guiding individuals through post-bankruptcy financial planning
-The importance of maintaining a low debt-to-income ratio before applying for a mortgage
-How bank statement loans and hard money loans can be alternative financing options

Many lenders require a minimum FICO credit score of 620 for mortgage approval, but government-backed options like FHA loans allow scores as low as 500 with a 10% down payment or 580 with a 3.5% down payment. VA loans, available to veterans in New Jersey, have no official credit score requirement but typically require at least 620-640. If you are planning for a conventional loan, most lenders require at least 4 years post-bankruptcy discharge and a minimum score of 640-660.

During the waiting period, it’s important to work on credit rebuilding and financial stability. Becoming an authorized user on a credit card, keeping credit utilization low, and maintaining on-time payments all help strengthen your profile. Lenders also want to see steady employment, stable income, and sufficient savings to cover a down payment and future mortgage payments.

For those looking for additional financing help, New Jersey down payment assistance programs offer support based on income level and property location. Exploring alternative options like bank statement loans may also work for self-employed borrowers who have difficulty meeting traditional income verification requirements.

If you need guidance navigating the mortgage process after bankruptcy, Straffi & Straffi Attorneys at Law can help you understand the best financial path forward. Call (732) 341-3800 to schedule a consultation and start planning for homeownership in New Jersey.

How long after Chapter 7 can I get an FHA loan?
Can you buy a house if you recently filed bankruptcy?
What is the waiting period after bankruptcy?
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