How long after bankruptcy will I be able to qualify for a home loan?

My husband and I are considering filing bankruptcy because of some past credit problems. I am in my last year of college, and I going directly into my master's which will take another two years. After that, I will start having to paying back my student loans. We hope to be able to qualify for a home loan after I am established with a job for a year or two. Would it be best to not file bankrupcy or will filing bankruptcy and paying on time look better to creditors on top of paying back student loans?

Update:

Dont_taz: I will not "forgo" for further education because that is not an option. I have 18 hours left to graduate, and I have a 4.0 GPA. My major is Speech Pathology which doesn't do me much good without a Master's degree. I have worked hard for what I have done, and I can't just give it up. Besides, I would put us in a bigger hole because I would have to start paying back my student loans in 6 months if I quit college (without a degree and no qualifications for a decent paying job). Our financial problems occurred because my husband has epilepsy, and he had a seizure on the job and they laid him off. On top of that, I found out I was pregnant (with no insurance because he had lost his job). He found another job which would not pick me up on insurance, and I have medical bills from the pregnancy. To make matters worse, my daughter had a fatal disease, and she died. We were just trying to find some way to wipe the slate clean, so to speak.

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  • 1 decade ago
    Favorite Answer

    If you file a chpt. 13, you can buy a home using FHA while you are in it, or 1 day out of it. You must have 12 months of perfect payment history to the trustee. You will need a 2 year job history with perfect credit after the bankruptcy & no lates on the bankruptcy.

    If you file a chpt. 7 - you must be discharged for 2 years before we will look at it. Again 2 years job history & NO bad credit after the bankruptcy. On both you will need 2 year rental history with cancelled checks proving you have paid the rent on time. Receipts from a landlord will not work- anyone can write a receipt!

    These rules are good right now but since you are several years away they could change. I would not suggest a bankruptcy- better to let the debts get old- anything over 3 years old doesn't count against you anyway but I would try to pay them off starting with the newest ones. Keep in mind a bankruptcy stays on credit for 10 years and can affect your rates on everything you buy.

    Source(s): 22 years mortgage business.
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  • Anonymous
    5 years ago

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    RE How long after bankruptcy will I be able to qualify for a home loan?

    My husband and I are considering filing bankruptcy because of some past credit problems. I am in my last year of college, and I going directly into my master's which will take another two years. After that, I will start having to paying back my student loans. We hope to be able to qualify for a home loan after I am established with a job for a year or two. Would it be best to not file bankrupcy or will filing bankruptcy and paying on time look better to creditors on top of paying back student loans?

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  • Anonymous
    1 decade ago

    Lenders have recently gotten more strict with bk borrowers. In the past you could qualify for a loan with only 2 years out of bankruptcy. Now the bk will need to be discharged about 4-5 years before any lender will even think about giving you a loan and your credit will need to be just about perfect for that period.

    If you can avoid filing bankruptcy that is always the better option. Even with poor credit if you can manage to pay bills on time for the next 2 years you can qualify for an FHA loan. Also, remember that credit does not just impact loans, if you file bankruptcy you may also have trouble finding places to rent as well as employment.

    Source(s): mortgage broker
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  • 1 decade ago

    There are a lot of banks who will allow you to obtain a home loan just months after filing bankruptcy. This being because you can't file bankruptcy again and they know you can't take their loan into bankruptcy. It's something to seriously consider though. There's no specific amount of time it would take to erase bankruptcy from your credit report. Most credit reports look at the past 7-10 years of credit. But, you can also get good credit reports after the bankruptcy so that when a creditor looks at your credit report, the bankruptcy won't show.

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  • 1 decade ago

    Unless the bankruptcy is the result of hardships such as divorce or illness, you will not have an easy time obtaining a home loan. What they will look at is you defaulted on your bills so you could pay your student loans and that isn't considered hardship. You might want to contact a consumer counseling service in your area to help you so you won't have to file bankruptcy. Getting that home will be worth it.

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  • 1 decade ago

    2 years from discharge is when lenders will START to look at you again.

    and make sure that you keep your butt straight till then. i know stuff happens, but at that two year mark (after discharge remember) they want a squeaky clean good credit person.

    a trick that i used and continue to give to clients since i went into the business of money .... and yes i had a BK, and this helped enormously.

    give small credit cards as you can and pay bills with them that you can, phone power, whatever you can.

    don't spend stupid obviously, but you would have to pay these bills anyways. anyways, pay them with cards whenever you can then send off the amount of payment to your card that day ... minus one dollar. it gives you mulitple revolving paid acredit lines. after that make sure that YOU report them to the three bureaus to get credit for your good credit lines

    this works slow, but you have 2 years.

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  • Anonymous
    1 decade ago

    I am confused. You are thinking of filing bankruptcy and your question is how do you obtain a mortgage for a home?

    FGS what are your people thinking? You say they are past credit problems? If they are past, that would mean they are not salient to your credit/debt situation.

    The best way to "not file" is that same as "not doing it". You need a budget, you need a plan, you need to forgo any further eduction and get your financial self in order.

    Source(s): Those with no plan are lost ~ Amelia Earhardt
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  • Anonymous
    1 decade ago

    probably at least 5 yrs after bankruptcy is discharged before you would have a shot at a mortgage and then your other debts - school loan balances would affect that possiblity at that time

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  • CHAR L
    Lv 7
    1 decade ago

    Bankruptcy keeps you from doing anything for 10years

    No home loans, car loans, credit cards etc...

    If you are more than $25,000 in debit than do it if NOT DON'T

    Most states will not allow you to file for bankruptcy until you are $25,000 in debit and they do NOT include Student Loans

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  • 1 decade ago

    chaper 7 two years FHA unless they change the rules --4 years conforming both are after discharge and good re-established credit

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