How soon can I buy a home after filing for bankruptcy?

Many people ask this question—how long after filing bankruptcy do they have to wait before buying a home? The answer may surprise you—you are not required to wait, at least not under the bankruptcy laws. You can apply for credit, such as for a home loan or mortgage, very shortly after filing.

Practically, of course, it may be more difficult to find someone who will lend to you after filing bankruptcy. But even there, it may not as difficult as you would think. While filing for bankruptcy is itself a negative indicator on a credit report, you only filed because you were having trouble with your debts—and the bankruptcy will help clean or clear that up. Also, home loans are secured loans, in that the lender could, if necessary, foreclose on the property to seek repayment. The fact that they are secured makes them less risky for the lender.

You will probably have to shop around more than you might have before filing bankruptcy. You may need to pay a slightly higher interest rate, or qualify only for a somewhat lesser amount—there will be some impact on your ability to access credit from having filed bankruptcy. But there is no inherent reason why can’t apply and start looking for a mortgage, with a reasonable expectation of getting one, right away.