I had a bankruptcy over a year ago. How long until I can get financing to buy a home?

~~If you had a foreclosure, short sale or bankruptcy caused by the recent housing bust, you may be eligible to buy another house this year, according to some housing experts. They are calling 2014 the year of the "boomerang buyer."

It depends on your circumstances, but you may qualify to buy a home as little as one year after a chapter 7 bankruptcy, or possibly even while you are in a chapter 13 bankruptcy.

There have been hanges made to Federal Housing Administration guidelines, and also there have been updates to Fannie Mae loan approval systems to permit people that lost homes or had a bankruptcy during the recent downturn, to qualify for new home mortgages in as little as one year after a foreclosure or other financial calamity.

Founders of the San Diego-based company AfterForeclosure.com said last month that millions of banned borrowers in the United States will be eligible for a mortgage in 2014.

Under the FHA's "Back to Work" program, certain borrowers will be approved for a home loan just one year after a foreclosure, short sale, deed in lieu of foreclosure or bankruptcy. Previously, FHA's timeline was three years for a short sale and foreclosure and two years after a bankruptcy.

Source: TheLedger.com

J Thomas Black
Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization