It is possible to purchase a home after filing for bankruptcy or dealing with a foreclosure if you take the time to prepare yourself to make the task less difficult. The mortgage industry is still changing constantly and lenders are sticking with more stringent standards so you have to know exactly what you need to do before you get in.. Buying a Home After Bankruptcy You need to first know what the normal waiting period is before approaching lenders with your application for a home loan. Under normal circumstances you need to wait at least 2 years after bankruptcy (chapter 7 bankruptcies) and 3 years for closures. If you had a Chapter 13 bankruptcy and need to refinance a home you may be able to get a loan after 1 year of timely payments and with permission from a court appointed official. Evaluate your credit report to make sure that it is accurate because any specifics of bankruptcy and foreclosures are usually documented inaccurately on credit reports. It’s easy to secure a copy of your credit report and score from the three major credit bureaus online at a reasonable cost. If you’d like help understanding the report take it to your bank and get someone there who knows credit reports to go over it with you. Often they can offer very helpful information detailing the specifics on the report and offer solutions to get you on the path of restitution. What Lenders Want From Somebody Who Has Undergone A Bankruptcy or Foreclosure Buy a Home After Foreclosure What the majority of the lenders are looking for when you’ve had a prior bankruptcy and or foreclosure is to evaluate if you’ve had any unfavorable actions on your credit report since the incident to determine if you have truly gotten back on the right course in the managing of debt and they also want to see a few items reporting on the credit report since the bankruptcy showing paid as agreed for a minimum period of time. I have discovered that many financial institutions are looking for a minimum of 12 months of paid as agreed activity on 2-3 accounts, also referred to as trade lines from the discharge date of the bankruptcy before considering granting a refinance. What to Do if your Credit is not At present up to Snuff for Home Refinancing If your report display additional negative occurrences besides medical (since many lenders will overlook medical) you may want to consider using an established credit repair company to get the unfavorable items removed before you apply for the refinance. Your search for a reputable company shouldn’t be taken lightly and you should pick one which has a good track record and can display evidence of their success rate with past customers. It’s easy to get drawn in by the wrong company so do your due diligence ahead of time. What Credit Scores are Needed to Refinance with Damaged Credit? With the uncertainty of the market place some loan providers are willing to do refinances for customers with damaged credit who are holding scores as low as 530. This is usually for FHA Loans aimed towards primary residences only. If you have a credit score of 580 or lower you will need to have a higher down payment for purchases and refinances are limited to a lower loan to value. Usually loan providers expect the borrower to have a few months reserve payments put aside (mortgage payments must include taxes and insurance). This will help to make sure that the mortgage companies don’t make getting out of your fix any worse than it needs to be.