You can have acceptable credit for a home loan after bankruptcy in as little as two years after you finish settling your debts. Two years is really the soonest you can make this happen, lenders have a general industry rule not to approve your application before then, but this time frame actually works well for applicants. After two years you will have a much better credit score and acceptable-sometimes even good-credit.
Lenders want to see that during those two years you have worked on building up credit and haven’t gotten into financial problems again. They want to see that you were able to handle making payments on time every month on both types of payments: revolving (like credit cards) and installment (like loans).
Another thing they want to see is signs of stability, for instance, they want to see that you have a well paying job that you have had for a good length of time and have lived in the same area for a decent length of time.
And, one of the more important things to show you are serious, lenders will want to see that you have saved a down payment for your mortgage. Twenty percent is a good goal to aim for, as this makes it so you won’t have to pay PMI (private mortgage insurance) which will save you money, and shows that you are serious about looking for a loan. If you don’t have twenty percent that doesn’t automatically count you out, but you will hopefully stand out more in other areas.
Having acceptable credit for a home loan after bankruptcy doesn’t have to be a battle, take your time and get your finances in order and you’ll have a place to call home in less time than you think.