Buying a house can be a challenge in itself, but if you’ve had to file for bankruptcy, owning a home may seem all the more difficult to achieve. In addition, having a lower credit score from your bankruptcy may prevent you from qualifying for the lowest interest rate your lender offers. Depending on the type of mortgage you qualify for, your lender, the type of bankruptcy you declared and the cause of your bankruptcy, you may have to wait one to four years after filing bankruptcy. First, let’s talk about the two most common types of consumer bankruptcy: chapter 7 and chapter 13. However, the waiting period goes down to two years if you can document extenuating circumstances that caused your bankruptcy.

Source: Forbes November 30, 2021 18:58 UTC