As soon as your bankruptcy has been discharged, you can apply for a home equity loan. However, expect to pay high interest rates for financing with such a low credit score. Waiting longer and practicing good credit habits will qualify you for the “A” list and better rates.Two Years For The Best RatesTo get the best rates on a home equity loan, it takes at least two years of good credit choices to qualify for “A” loans. While waiting a couple of years can be difficult, it can save you thousands in interest costs.You can begin rebuilding your credit by opening a credit card, using it, but not maxing out the account. Building up a cash reserve can also improve your credit score. Conventional lenders like to see at least three or more months of income saved.Subprime Lenders An Early PossibilityYou can qualify early for a home equity loan with a subprime lender. Subprime lenders deal with high risk loans, particularly those with poor credit. The longer you wait after your bankruptcy, even a few months, the better your rates will be with these financing companies.As with any type of financing company, you should research subprime lenders before signing a contract. Rates can vary widely between companies. Request an APR quote on home equity loans to find the most reasonable rates and fees. Online sites make gathering these quotes a snap.Home Equity Loan OptionsHome equity loans come in a variety of financing packages, each with different rates and fees. A second mortgage offers the lowest rate, but high upfront costs. A line of credit can be opened with no or little cost, but rates are higher. Refinancing your entire mortgage to cash out your equity is also an option.While a bankruptcy will stay on your credit report for seven to ten years, you can enjoy good credit in as little as two years. Each family has their own unique budget concerns, so there is no one best time to take out a home equity loan. Weigh your options carefully, and research lenders for the best deal.