First, Let’s Talk About the Waiting Period
After filing for bankruptcy, there’s typically a waiting period before you can qualify for a mortgage again. The length of that wait depends on the type of bankruptcy you filed and the type of loan you’re applying for.
Here’s a quick breakdown:
Chapter 7 Bankruptcy
FHA or VA Loan: 2 years from discharge
- USDA: 3 years from discharge
- Conventional Loan: 4 years from discharge
Chapter 13 Bankruptcy
FHA or VA Loan: 1 year into repayment (with court approval), or 2 years after discharge
- USDA: 1 year from discharge but with court approval
Conventional Loan: 2 years from discharge, or 4 years from dismissal
Every lender is a little different, but those are the general guidelines. At NEXA Mortgage, we have lenders with programs that will allow bankruptcy at a much sooner date than those listed above. Feel free to ask me about those.
Step-by-Step: How to Get Mortgage-Ready After Bankruptcy
1. Rebuild Your Credit
The first thing lenders want to see is that you’ve bounced back financially. Focus on:
Paying every bill on time, every time.
Keeping credit card balances low.
Avoiding new debt unless it’s strategic and manageable.
Checking your credit reports for errors (you can get them free at AnnualCreditReport.com).
A solid credit score tells a lender, “Hey, I’ve learned, I’ve recovered, and I’m ready.”
2. Save for a Down Payment
Some loan programs (like FHA) allow down payments as low as 3.5%, but having more saved can strengthen your application and give you flexibility. Plus, the more you put down, the less you have to borrow—and that can mean lower monthly payments.
Pro tip: Saving also shows lenders you’re financially disciplined, which works in your favor.
3. Stay Consistent with Income and Employment
Lenders look for steady, reliable income. If you’ve been at the same job for two years or more, that’s a plus. If you’re self-employed, be ready to show solid income through tax returns and bank statements.
4. Get Pre-Qualified Early
This part’s important. Even if you’re not quite ready to buy, talking to a mortgage professional can give you a clear roadmap. We’ll look at your full financial picture and help you figure out exactly what you need to do to qualify when the time comes.
5. Choose the Right Loan Program
Not all loans are created equal. Some are more forgiving after bankruptcy than others. FHA and VA loans are known for being flexible, especially for folks rebuilding their credit. A good lender will walk you through all your options and help you pick the best fit.
The Bottom Line
Bankruptcy isn’t the end of your financial story. It’s a chapter—a tough one, sure—but not the whole book. You can buy a home again, and when you do, it’ll feel like the ultimate comeback.
If you’re not sure where to start, I’d love to help. Whether you’re just beginning to think about buying or you’re ready to get pre-qualified, let’s talk. No pressure—just real guidance, from someone who’s helped others walk this same path.
