Many Pennsylvania residents who struggle with financial problems may feel hesitant about pursuing bankruptcy to help them get a fresh financial start in part because they fear that they would be unable to get a new mortgage someday. That, however, is not true. While there may be some extra steps involved, it is possible to buy a new home or refinance an existing home even with a bankruptcy on a record.
As Smart Asset explains, people who have filed for either Chapter 7 or Chapter 13 bankruptcy will not likely be able to get a new home loan immediately upon filing for or completing a bankruptcy. There are generally accepted waiting periods for this. These waiting periods vary based in part on what type of bankruptcy was filed as well as what type of home loan is being sought. For example, FHA loans may have different wait times than do loans for veterans.
Another factor that may impact how long a consumer will have to wait before getting a mortgage after a bankruptcy is whether or not a prior home was foreclosed on. Having both a foreclosure and a bankruptcy on record may extend the number of years a person should hold off seeking a new loan.
During the wait period, My Horizon Today recommends that consumers focus their energy on rebuilding good credit. This not only includes obtaining, using and paying off new credit but should also include cleaning up a credit history. Many people find that there are errors on their credit reports and working to have these eliminated is important.