Get Started

Preparing for Homeownership After Bankruptcy

Learn about budgeting, credit history, savings and mortgage qualification factors after bankruptcy.

Written by Fresh Start Solution Team

Sample content — final article coming soon.

In short

Preparing for homeownership usually involves understanding your budget, your credit history, how much you have saved and the requirements of different mortgage programs.

Know your budget

Homeownership costs more than the monthly mortgage payment. Property taxes, insurance, maintenance and repairs are all part of the picture.

What mortgage lenders may review

  • Credit history, including how long ago a bankruptcy was discharged
  • Income and employment history
  • Existing debts compared with income
  • Savings for a down payment and closing costs

Waiting periods and requirements after bankruptcy vary by loan program and lender. Approval is never guaranteed.

Building toward the goal

Saving consistently, paying bills on time and reviewing your credit reports are common steps people take while working toward homeownership. A HUD-approved housing counselor can also help you understand your options.

Sources

This article is general educational information, not individualized legal, tax or financial advice.

Related Articles

Keep Learning

Student Loans and Your Credit

Learn how student loan payments, repayment options and account reporting relate to your financial picture.

Read

Collections and Charge-Offs Explained

Learn what collection accounts and charge-offs mean and what questions to consider before acting.

Read

How to Read Your Credit Report

Learn how to review credit report sections and identify information that may need further review.

Read

Turn What You Learn into a Plan.

The Fresh Start Program brings education, a roadmap and practical tools together in one place.

Get Started Explore the Program