Can You Buy a House After Filing for Bankruptcy? Here’s What You Need to Know

As your local NEPA REALTOR®, I understand that the road to recovery can feel long, but homeownership is often a very achievable goal. Let's break down what you need to know about buying a house after bankruptcy right here in Scranton, Wilkes-Barre, or anywhere across Luzerne and Lackawanna Counties.

The Big Question: How Soon Can You Plant Roots After Bankruptcy?

So, when can you realistically look at those "For Sale" signs? For Chapter 7 bankruptcy, you're generally looking at a 2 to 4-year waiting period post-discharge before most traditional mortgages become an option. However, Chapter 13 can offer a quicker path, if you've made at least 12 on-time payments on your plan and get court approval, buying a home might be possible sooner.

When it comes to financing, certain loan types are more forgiving: 

• FHA loans often allow eligibility just 2 years after Chapter 7 or even 1 year into Chapter 13 with court okay. 
• VA loans can be accessible around 2 years post-bankruptcy. 
• USDA loans for those eyeing rural spots in Luzerne or Lackawanna Counties, typically have a 3-year waiting period.
• Conventional loans generally have a stricter 4-year post-Chapter 7 requirement.

Boost Your Chances: What to Do During the Waiting Period

Okay, so you've got this waiting period after bankruptcy, don't see it as hitting pause, see it as your chance to level up for homeownership! Think of it as your personal financial training montage. Here's how to make every second count:

• Credit Score Rehab: Time to show those credit bureaus you're serious! Pay every single bill on time, like it's your superpower. And if you can, chip away at any lingering debt, future you will thank you!
• Keep Your Finances Chill: Resist the urge to take on new big loans or co-sign for anyone. Let your financial picture settle and show lenders you're back on solid ground. 
• Become a Savings Superstar: Now's the time to get serious about saving for that down payment and those closing costs. Every little bit adds up. You're planting seeds for your future home!
• Get Mortgage-Ready Early: Seriously, chat with a lender about getting pre-approved sooner rather than later. It's like getting a sneak peek at what you can afford and gives you time to fix any hiccups before you start house hunting. Trust me, knowing your playing field is a huge advantage!

Final Thought: Bankruptcy Doesn’t Mean Homeownership Is Over

Think of it as a new chapter, not the end of the book. With time, strategy, and a little patience, you can buy a house in Northeastern Pennsylvania after bankruptcy. I'm here to help folks like you across Scranton, Wilkes-Barre, and all of Northeastern Pennsylvania understand their options and chart a course toward homeownership. From connecting you with lenders who understand your situation to finding the perfect neighborhood to call home.