If you're considering bankruptcy, you don't have to shelve your home buying aspirations for the next decade. In the world of bankruptcy, we call these people "boomerang buyers," and for good reason.

It's possible to close on a home loan a couple of years of a bankruptcy discharge, but a lot depends on the type of loan you're interested in and how you rebuild your credit following the bankruptcy.

Some debtors struggle to rebound, especially when they have a hard time earning enough income. For those with a decent and steady income stream, buying a home may be the next step. If you're determined to buy a home in the near future, you have to work hard to rebuild your FICO score long before you start looking for a house.

Buying After a Chapter 7 or Chapter 13

The most consumer-friendly bankruptcies are Chapter 7 and Chapter 13. The Chapter you file will play a role in how soon you can be eligible for a home loan. This applies to the loan product as well.

Mortgage programs vary, and they can have different "seasoning periods" following a bankruptcy discharge. Some lenders impose their own in-house requirements on top of those.

If you file a Chapter 7 bankruptcy, the clock starts to tick once it's discharged. You're usually looking at a two-year wait for FHA and VA financing, while you're looking at a four year wait for a conventional loan.

With a Chapter 13 bankruptcy, it's possible to land a conventional loan two years following the discharge, and VA and FHA loans are even more lenient.

Your ability to qualify all comes down to your credit worthiness. You must use those mandatory waiting periods wisely to rebuild your credit as much as possible. While a bankruptcy adds risk to your credit profile, it doesn't mean that it has to be ruinous.

For more home buying advice, contact a bankruptcy attorney!