"Have you looked into how soon lenders typically allow refinancing post-bankruptcy? Might be worth checking before counting on that option."
Yeah, that's a really good point. Honestly, as someone who's just dipping their toes into the whole home-buying thing, the idea of refinancing after bankruptcy sounds about as fun as assembling IKEA furniture without instructions... doable, but probably frustrating as heck. 😂
But seriously, from what I've heard, lenders can be pretty cautious post-bankruptcy. A friend of mine went through something similar, and she mentioned that waiting periods can vary quite a bit depending on the lender and the type of bankruptcy filed. Have you talked to a mortgage broker yet? They might have some sneaky workarounds or at least give you a clearer timeline.
Either way, props to you for tackling this head-on. Home buying is stressful enough without extra hurdles, so hang in there—you're doing great!
Yeah, lenders definitely vary on that timeline... from what I've seen, FHA loans might be a bit more forgiving—usually around two years after Chapter 7. But conventional loans can take longer. Definitely worth chatting with a broker to get specifics for your situation.
When my sister went through Chapter 7 a few years back, she was pretty set on waiting it out for a conventional loan. But after talking to a broker, she realized FHA was actually doable sooner than she thought. She ended up going that route and used the extra time to build up her savings instead of waiting longer. Makes me wonder though... does having a bigger down payment significantly improve your chances with conventional lenders post-bankruptcy, or is it mostly about the timeline?
"Makes me wonder though... does having a bigger down payment significantly improve your chances with conventional lenders post-bankruptcy, or is it mostly about the timeline?"
From what I've seen, it's a bit of both. A bigger down payment definitely helps lenders feel more secure, especially after bankruptcy. But honestly, the timeline matters a lot too—most conventional lenders have strict waiting periods. My cousin went through something similar, and even with a hefty down payment, he had to wait it out a bit. FHA can be a great stepping stone though, glad your sister found that route helpful!
My experience was pretty similar. Even with a decent chunk saved up, lenders were mostly focused on how long it'd been since discharge. Had to wait about 3 years before conventional lenders took me seriously... patience was key, unfortunately.
