How Do You Get a Mortgage After a Bankruptcy Discharge?


Quick Answer

To get a mortgage after a bankruptcy discharge, an individual must wait two to four years, depending on the type of mortgage he desires, according to Nolo. As of 2016, mortgage options for those who have filed for bankruptcy in the past include Federal Housing Administration, Department of Agriculture, Department of Veterans Affairs and traditional home loans. Borrowers still have to meet all of the loan's standard requirements to stand the best chance of being approved.

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How Do You Get a Mortgage After a Bankruptcy Discharge?
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Full Answer

Applying for an FHA or VA loan after filing for Chapter 7 bankruptcy can be done two years after the bankruptcy has been officially discharged, notes Nolo. For Chapter 13 bankruptcy, the individual needs to wait until he has made at least 12 monthly payments and has been approved by the bankruptcy court. Applicants must also specify why they filed for bankruptcy on their loan applications.

For USDA mortgages, a person has to wait three years until his Chapter 7 mortgage has been discharged before applying or until he has made 12 monthly Chapter 13 bankruptcy payments and has approval from the bankruptcy court, according to Nolo. Another option for those who have filed for Chapter 13 bankruptcy is to wait until a year after their bankruptcy discharges.

Conventional loans have a wait period of four years for Chapter 7 bankruptcy and two years for Chapter 13, notes Nolo. If a Chapter 13 bankruptcy was dismissed without being discharged, the borrower has to wait four years before applying for a traditional mortgage.

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