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Can You Buy a House After Bankruptcy in Texas

By Javier Aponte | March 27, 2025

Can You Really Buy a House After Bankruptcy in Texas?

Yes—you absolutely can. While bankruptcy might feel like a financial dead-end, in Texas, it’s more of a detour than a roadblock to homeownership. Many Texans have bounced back stronger, turning their post-bankruptcy period into a strategic financial reset. So, let’s break down the process step-by-step.

How Bankruptcy Impacts Mortgage Approval

If you’ve filed for Chapter 7 or Chapter 13 bankruptcy, lenders will look at several key factors before considering your mortgage application:

  • Time Since Discharge: For FHA loans, you’ll usually need to wait 2 years after a Chapter 7 discharge and 1 year into a Chapter 13 repayment

  • Credit Score Recovery: Most lenders look for at least a 580–620 score, though the higher, the better

  • Debt-to-Income Ratio (DTI): Ideally, your DTI should be under 43%

  • Employment History: Steady, reliable income is a green flag for lenders

How It Works: Your Roadmap to Buying a Home After Bankruptcy

1. Check Your Credit Report

Get your free credit report annually from all three bureaus at AnnualCreditReport.com. Dispute any errors right away.

2. Rebuild Your Credit

  • Use a secured credit card responsibly (NerdWallet’s Best Secured Cards)

  • Become an authorized user on someone else’s account

  • Keep credit utilization under 30%

  • Always pay on time

3. Save for a Down Payment

Even a small down payment improves your chances of approval and lowers your interest rate. FHA loans may allow as little as 3.5% down. Check out the Texas State Affordable Housing Corporation (TSAHC) for down payment assistance.

4. Explore Mortgage Options

  • FHA Loans: Designed for buyers with less-than-perfect credit

  • VA Loans: For eligible veterans with no down payment required

  • Conventional Loans: May require stricter credit, but often better terms

5. Get Pre-Approved

Use tools like the Consumer Financial Protection Bureau’s mortgage prep guide to understand your affordability before applying.

Voice-Search Friendly FAQs

What’s the Fastest Way to Get a Mortgage After Bankruptcy?

Focus on improving your credit score, stable employment, and a low DTI. FHA loans are often the fastest path forward.

How Long Do I Have to Wait to Buy a Home After Bankruptcy in Texas?

  • Chapter 7: Typically 2 years post-discharge for FHA, 4 years for conventional loans

  • Chapter 13: May be eligible after 12 months of on-time payments

How Does Kisch Consumer Law Help After Bankruptcy?

They provide personalized legal strategies to help you clean up your credit, dispute unfair debt listings, and prepare you for mortgage success.

Why Choose Kisch Consumer Law?

Here’s why Texans turn to Kisch Consumer Law when buying a home after bankruptcy:

  • Expertise You Can Trust: Decades of experience in bankruptcy and consumer rights

  • Tailored Solutions: From credit clean-up to lender negotiations

  • Proven Results: Real clients. Real wins. Real testimonials

“I never thought I’d own a home again after bankruptcy. Kisch Law made it possible.” — Actual client testimonial

Quick Tips for Faster Approval

  • Stay current on all bills

  • Avoid taking on new debt

  • Keep job hopping to a minimum

  • Consider a co-signer if needed

  • Build a cash reserve (3–6 months of expenses)

Ready to Start Over? Start Smart.

Buying a house after bankruptcy in Texas isn’t just possible—it’s a game-changer when done right. Whether you’re just coming out of bankruptcy or already rebuilding, your financial comeback story starts here.

Explore how Kisch Consumer Law helps Texans like you navigate post-bankruptcy recovery

Wrap-Up: Time for a Fresh Chapter (With a Front Porch!)

Let’s be real—bankruptcy can feel like you’ve been benched in the big game of life. But buying a house in Texas post-bankruptcy? That’s your comeback touchdown.

So grab that financial game plan, call in your legal quarterback (yeah, we’re talking about Kisch Consumer Law), and start picturing your new front door. It might squeak a little at first, but it opens to a second chance—and this time, you’ve got the playbook.

Your next move starts now.

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