Getting a Mortgage After Bankruptcy

Bankruptcy may make getting a new home easier in the future

Obtaining a mortgage after filing for bankruptcy is not impossible. The amount of time will vary, depending on your credit, the type of bankruptcy you filed and the type of loan that you desire.

FHA loans can be obtained 2 years after receiving a discharge from Chapter 7 bankruptcy. If you have filed for Chapter 13 bankruptcy, you can actually obtain an FHA loan during bankruptcy, with court approval and a history of 12 months of complete plan payments. The same standards are applicable to VA loans in both Chapter 7 and Chapter 13 bankruptcies and will require an explaining why you filed for bankruptcy.

USDA loans can be obtained 3 years after receiving a discharge for a Chapter 7 bankruptcy, or 1 year after receiving a discharge for Chapter 13 bankruptcy. USDA loans may also be obtained during Chapter 13 bankruptcy with court approval.

Conventional loans can be obtained 4 years after receiving a Chapter 7 bankruptcy discharge, and 2 years after receiving a Chapter 13 discharge.

These are the mandatory time periods you will have to wait in order to qualify for the aforementioned mortgage loans. The other typical qualifications such as credit score and a steady, reliable income will still apply. You should also be prepared to explain how and why you filed for bankruptcy, and how you have improved since that time.