Many people today have had the unpleasant misfortune to have filed Bankruptcy.  Most people also think this means they can't buy a home.  This does not have to be true.

GovieMan focuses on what caused the Bankruptcy, how long ago was it, and have you re-established a good payment history since then (see my page on "Rebuilding your Credit").  You can even still be in a Chapter 13 Bankruptcy and be eligible to buy a new home.

In most cases, with a Chapter 7 Bankruptcy, you need to wait 2 years from the Discharge of the Bankruptcy before applying for a new Mortgage.  If your Bankruptcy was beyond your control (medical expenses not covered by insurance, loss of job, etc.), then you MAY be able to buy a new home in as little as 12 months after your Discharge.  While this is becoming more difficult to do, it makes sense to talk with me to determine how this rule affects you.

One of the most important things to accomplish after your Discharge is to re-establish an on-time credit history.  The guidelines typically look for a 24 month on-time payment history on at least 4 accounts (late payments on anything can be difficult to overcome).  If you have re-established your good payment history and your Bankruptcy is determined to be "beyond your control", then 12 months of re-established credit history MAY be enough.  It is a good idea to find new credit resources as quickly after your Discharge as possible.  It may be a secured credit card, or something like that.  Of course, use these new sources as just a tool to improve your credit standing.  Pay the accounts off each month.  That will keep you from risking any potential negative impact on your credit or your debt to income ratios.  Also, if you allow the balance on a credit card to exceed 50% of the limit, then it will negatively affect your credit rating and an Underwriter will also view it negatively.  Remember, this is only to help re-establish GOOD credit.