How to Buy a Home After a Bankruptcy


If you have a bankruptcy in your past, you may be able to secure financing to buy a home - but here's what you need to know.

How to Buy a Home After a Bankruptcy

Many people who have a bankruptcy in their past eventually qualify for a mortgage loan. Most lenders recognize that nobody enters a bankruptcy without weighing all the pros and cons, and that in some cases, it's the only way out of a desperate situation. However, lenders are a bit cautious about lending to people with a more recent bankruptcy, because it does show that a person was once unable to pay their debts.

Related: Is there a secret to saving for a down payment?

How Long Should You Wait After Bankruptcy to Buy a Home?

Most lenders will require that you wait at least two years after your bankruptcy has been discharged before they'll consider you for a loan. Some lenders may require a longer waiting period, such as three to five years. The farther in the past your bankruptcy is, the more likely you are to get approved for a loan with favorable terms - especially if you've taken steps to improve your credit score in the meantime.

What You Need to Do to Get Approved for a Mortgage After Bankruptcy

If you want to buy a home after bankruptcy, there are a few things you can do to improve your chances of getting approved for a loan:

  • Get a copy of your bankruptcy discharge paperwork and make sure everything is accurate. If there are any errors, dispute them with the credit bureau.
  • Work on rebuilding your credit score by making all your payments on time and keeping your credit card balances low.
  • Save up for a larger down payment, which will show lenders that you're serious about owning a home and capable of making regular mortgage payments.
  • Get a cosigner with good credit to increase your chances of getting approved for a loan.

Related: When should you offer over asking price?

Are You Buying or Selling a Home in Lakewood?

If you’re not already living in Lakewood, or if you are but you’re looking for a new home, we’re here to help. Call us right now at 562-882-1581 or start browsing our Lakewood real estate listings to find your dream home today!

You can also browse:

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Bellflower real estate listings

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