If my wife and I recently filed and completed a Chapter 7 bankruptcy how soon can we purchase a home?

In my practice, I've found that most couples can buy a house at reasonable interest in two years after filing a Chapter 7. You'll need to reestablish your credit. That means you have to make your payments on time to a business that reports to the credit agencies. For example, you're renting an apartment or a house, you pay utilities but most landlords and utilities don't report to the credit agencies. Car loans and credit cards generally report, so if you have a car loan, you're rebuilding your credit just by making the payments. When you filed bankruptcy, you received a swarm of car loan and credit card offers - many of these are ripoffs but you should look at them and if there is a low limit credit card with a good interest rate (in your case consider 18% a good interest rate), then apply and make the payment every month.

The bankruptcy law does not provide any guidelines that prevent people from purchasing any property after filing bankruptcy. The bankruptcy law also does not prohibit any creditor from issuing people who filed bankruptcy from financing the purchase of property. However, federal regulations and individual institutional criteria do specify when these organizations can consider people eligible for financing, and you would have to ask them, not an attorney, about their criteria. Not all operate the same way.

Typically within two years

It would depend on how recently you completed your chapter 7 bankruptcy and whether the trustee believes you were not hiding assets to purchase this home.

Most banks in our area will not consider a mortgage application until two years have elapsed since the discharge in the case. You can get around that if you have a nice deposit to put down to create equity in the home, but that is usually the only exception.

Talk to a real estate mortgage broker. There are different programs out there. The general thinking is that a wait of either 2 or 3 years after bankruptcy is the norm but a mortgage broker would know best what programs are out there at any given time and the parameters needed to qualify.

2 years, according to FHA underwriting standards.