Companies that may offer a mortgage loan to an individual who has filed bankruptcy include Quicken Loans and FirstCal Colorado, according to The New York Times. However, individuals must wait two years to apply for a FHA or VA mortgage loan after a bankruptcy is discharged, states Nolo. Whether a mortgage lender approves someone with a bankruptcy depends in part upon the individual's credit history since the bankruptcy, notes Nolo and The New York Times.
The type of bankruptcy also factors into when and where an individual can obtain a mortgage loan, states Nolo. If a person files for Chapter 13 bankruptcy, he may be able to qualify for an FHA loan during a bankruptcy if he has made satisfactory payments toward the existing bankruptcy for a period of 12 months. However, for those seeking a USDA or conventional mortgage loan, the wait time after a bankruptcy increases to three and four years, respectively.
Criteria that mortgage lenders look for when considering an individual who as filed bankruptcy are similar to those for individuals who have not filed a bankruptcy, explains Realtor.com. A good debt-to-income ratio, stability in employment, and an improved credit history all work toward getting approved for a loan. However, lenders may give additional consideration and shorten the wait time for obtaining a mortgage if there has been a substantial hardship in the family, such as the loss of a spouse, divorce or an illness, states CNBC.