Its possible to buy a house after filing bankruptcy in Oklahoma. If you’ve had to file for bankruptcy, it’s because you experienced financial hardship. This financial hardship likely resulted in a low credit score. The combination of economic hardship and a low credit score makes buying a home difficult, but it’s not impossible. Its not uncommon for people to wonder about credit after they file. In most cases your ability to buy a house after filing bankruptcy depends on what’s been done by you since you filed. By no means is the fact that you filed bankruptcy by itself a death nail.
How Does Bankruptcy Affect A Home Purchase?
Once you file for bankruptcy, you can look forward to being debt-free one day very soon. How soon that day is depends, in part, on which bankruptcy chapter you filed. Chapters 7 and 13 are the most common. Chapter 7 bankruptcy involves liquidating (selling) your assets to pay off your creditors. In most chapter 7 bankruptcy cases the assets that you have are exempt. This means that you keep them free of the bankruptcy. A chapter 7 case moves quickly. From the time its filed until it totally closes is about 4 months.
Chapter 13 bankruptcy is filed less then a chapter 7. This chapter of bankruptcy is normally reserved for people who make to much money to file a chapter 7. It is also reserved for people who are employed and are facing a potential foreclosure. They file this to help keep the current home and wish to save it. Unlike the chapter 7 fresh start and chapter 13 requires the filer to make payments on the secured and unsecured debt they have when the case is filed. The chapter 13 puts you on a three-to-five-year payment plan based on your income. At its end, your debt should be cleared.
Wait Time To Buy a House After Filing Bankruptcy
Rebuilding your credit is the most important thing you can do after you file. Many folks are surprised to learn that you can do this and if done right its done rather quickly. The first thing to understand is that job history will play a huge part in your ability to buy a home after filing bankruptcy. Now each lender is a littler different but most require that you have been on your current jog for around two years. This proves to the lender that you you will continue with employment.
Another important thing lenders consider when lending to someone that’s previously filed a bankruptcy is credit since they filed. Our bankruptcy attorneys recommend that as soon as you file bankruptcy get a secured credit card. This is usually fairly easy to do. The reason is that the creditor has collateral in exchange for lending you the money. Usually once you get the secured line and make the payments the creditor quickly raises the credit limit. Soon after that, provided you have paid on time, the creditor will raise the limit and potentially not require security in exchange for the credit card.
Although there is not a set rule that tells you exactly how long it takes to buy a house after filing bankruptcy in Oklahoma a general rule is that two years depending on your current financial ability to pay. There are several different types of home loans available with different requirements. Within two years you should have gotten back on your feet making your credit worthiness more appealing to lenders.
FHA Loan Programs After Bankruptcy
Fannie Mae is another government sponsored home loan program. Like other government loan programs’ its purpose is to make lending to borrowers a little bit easier then other typical bank mortgages. FHA has various programs and initiatives aimed at assisting borrowers in obtaining home loans. These programs are typically implemented in partnership with lenders. The programs aim to provide more flexible terms, lower down payment requirements, and other benefits to eligible borrowers. The idea behind FHA loans is to make the down payment required a little lower but the bank making the loan must be a part of the program.
USDA Home Loans
USDA home loans, also known as USDA Rural Development Guaranteed Housing Loans or USDA RD loans, are mortgage loans offered by the United States Department of Agriculture (USDA) to support homeownership in rural and suburban areas. These loans are designed to assist low-to-moderate income borrowers who may not qualify for traditional mortgage financing. A major advantage to this loan program is that the loans are made with little or no down payment. This makes loan and home affordability available to many low income home buyers. The United States Department of Agriculture may grant you a loan in three years after a Chapter 7 discharge and one year after a Chapter 13 discharge if you’re a low-income resident in a rural town.
Fannie Mae Home Loans and Bankruptcy
Fannie Mae, also known as the Federal National Mortgage Association (FNMA), is a government-sponsored enterprise (GSE) in the United States. It was formed just after the great depression. The purpose behind its creation was to stabilize the mortgage market. If you secure a Federal Housing Administration loan, the FHA will pay your lender if you fall behind in mortgage payments. But you must wait at least two years before getting an FHA loan from the time of your Chapter 7 debt settlement. A bankruptcy judge needs to approve this loan, along with the lender, if you filed for Chapter 13 bankruptcy.
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Tulsa Bankruptcy Lawyers In Oklahoma
Bankruptcy is a complex process and going it alone could have serious consequences. Fortunately, Kania Law Office’s bankruptcy attorneys can help you navigate this situation. We’ll protect your rights and interests and help you achieve the best result. If you are dealing with an unmanageable debt situation and are considering filing for bankruptcy, you should consult with our attorneys right away. Our Tulsa bankruptcy lawyers have years of experience helping clients resolve their financial dilemmas. To learn how Kania Law Office’s can help you, call (918) 743-2233 or contact us online.