Banks and mortgage lenders do offer financing for consumers who declared bankruptcy at some point in the past, according to Mortgage101.com. Typically, banks require that consumers wait four years after filing for bankruptcy.
There are two types of bankruptcies: Chapter 7 and Chapter 13. A Chapter 7 bankruptcy absolves consumers from all outstanding debt, whereas a Chapter 13 bankruptcy enables consumers to repay portions of their outstanding debt, explains United States Courts. Under Chapter 13 bankruptcy protection, the Federal Housing Administration allows mortgage lenders to consider applicants who continue to pay their outstanding debts if the debtors make verified payments on time for a period of one year. Borrowers must wait two years after the discharge date of a Chapter 7 bankruptcy to apply for a mortgage, reports FHA.com.