Buying After Bankruptcy or Foreclosure

A bankruptcy or foreclosure can feel like it closes the door on homeownership forever. It does not. There are defined waiting periods after which standard loans are available again — and non-QM programs that can open a door even sooner.

The standard waiting periods

Each program sets a seasoning period — a stretch of time after the event before you can qualify for that program again. They vary by program and by whether the event was a bankruptcy or a foreclosure, and documented extenuating circumstances, like a medical crisis or job loss beyond your control, can shorten some of them.

The faster path

You do not always have to wait out a full standard seasoning period. Recent credit event programs — part of the non-QM toolbox — can finance a borrower sooner after a bankruptcy or foreclosure, at terms that reflect the recency, with the expectation of refinancing into conventional terms once you have seasoned. Buy now, refinance later, own throughout.

Rebuild while you wait

• Pay everything on time, every time — new history is powerful.
• Keep credit-card utilization low.
• Save for a down payment and build reserves.
• Keep documentation of the circumstances behind the event.