Getting a mortgage after bankruptcy is a matter of timing, documentation, and lender selection, not permanent exclusion. By the end of this guide you will know your waiting period, which loan type fits your filing, and how an independent broker like Duane Buziak (NMLS #1110647) matches your file to wholesale lenders whose guidelines suit it.
Before you start, gather your bankruptcy discharge or dismissal papers, recent credit reports from all three bureaus, and two years of income documents (W-2s, tax returns, or profit-and-loss statements if you are self-employed). Terms used throughout: seasoning is the time that must pass after discharge; an overlay is a lender rule stricter than the agency minimum.
Step 1: Confirm Your Bankruptcy Type and Discharge Date
Start with the paperwork. Chapter 7 is a liquidation: eligible debts are wiped out, usually within a few months of filing. Chapter 13 is a repayment plan lasting three to five years, and in many cases you may be able to qualify for a mortgage while still in the plan, with trustee or court approval. The type you filed decides which waiting period applies.
Next, find the exact date. A discharge means the court released you from the debts. A dismissal means the case ended without a discharge, and lenders often treat dismissals more strictly. Find the date on your discharge order, through your bankruptcy attorney, or by searching your case on PACER.
The clock starts at discharge or dismissal, not at filing. A Chapter 7 filed in January and discharged in May starts its seasoning in May.
A common mistake: assuming the roughly seven-to-ten-year life of a bankruptcy on your credit report is the mortgage waiting period. They are separate. Credit reporting is governed by the credit bureaus and federal law, while seasoning is set by each loan program. Most borrowers can buy years before the filing drops off their report.
Written by Duane Buziak, NMLS #1110647, an independent mortgage broker licensed in VA, FL, TN, GA, DC, NC, SC, and MD.
Step 2: Match Your Date to the Waiting Period for Each Loan Type
With your date in hand, compare it against each program. The figures below are commonly cited as of 2026; guidelines get revised, so confirm them at the source before you rely on them.
- Conventional: The Fannie Mae Selling Guide generally calls for four years after a Chapter 7 discharge. For Chapter 13, it is generally two years from discharge or four years from dismissal.
- FHA: HUD Handbook 4000.1 generally allows two years after a Chapter 7 discharge. Chapter 13 borrowers may qualify after twelve months of on-time plan payments, with written permission from the court or trustee.
- VA: The VA home loan program commonly applies two years for Chapter 7. Chapter 13 generally requires at least a year of satisfactory payments plus trustee or court approval.
- USDA: Guidelines commonly reference three years after a Chapter 7 discharge, with Chapter 13 allowed after a year of satisfactory plan payments and approval.
Extenuating circumstances
Waiting periods can sometimes shrink when the bankruptcy was caused by a documented event beyond your control, such as a serious illness, job loss, or the death of a wage earner. Under conventional guidelines, this can cut the Chapter 7 wait to roughly two years, and FHA has a similar reduction toward twelve months. Expect to provide proof: medical records or bills, termination letters, a written explanation, and evidence that you have since re-established good credit. Poor money management does not qualify.
Non-QM as a shorter route
Non-QM (non-qualified mortgage) loans fall outside agency rules, and some programs accept shorter seasoning, sometimes one to two years. They are priced differently, usually with higher rates and larger down payments, and guidelines vary by lender. Duane Buziak reviews these options file by file rather than assuming one lender’s rules apply across the board.
Step 3: Pull Your Credit Reports and Audit the Post-Bankruptcy Record
Request your free reports at AnnualCreditReport.com, the federally authorized source. Read every tradeline included in your filing. Each should show a zero balance and a status such as “included in bankruptcy” or “discharged.” Accounts still showing balances or past-due status after discharge are errors that can distort your score and your approval.
Dispute errors in writing with both the credit bureau and the company that furnished the information. The CFPB explains the dispute process, including what to include and how long bureaus generally have to investigate. Keep copies and proof of mailing.
Then look at activity after the discharge date. New late payments hurt more than the bankruptcy itself in manual underwriting, which is the human review used when an automated system will not approve a file. An underwriter reading a clean discharge followed by two years of on-time payments sees recovery. One that finds fresh 30-day lates sees the same problem repeating.
Apply now or keep rebuilding?
Use this rule of thumb: if you have met the waiting period, have no post-discharge lates, and have at least a couple of open accounts with some history, a pre-qualification is worth requesting now. If you are missing active tradelines or had a recent late payment, a few more months of clean history can change which programs and pricing are open to you. You do not need perfect credit, and waiting for it can cost you more than it saves.
Step 4: Rebuild Credit and Document Your Re-Established History
Underwriters want evidence that you handle credit responsibly again. Reviewers generally look for at least a couple of active tradelines after the bankruptcy. Two common ways to build them:
- A secured credit card, with the balance kept under roughly 30% of the limit and paid on time every month.
- An installment account, such as a small credit-builder or auto loan, with no missed payments.
Equally important is what you avoid. Stay away from new collections, large new debts, and unexplained deposits into your bank accounts. A big financed purchase right before applying raises your debt-to-income ratio, and a cash deposit with no paper trail will have to be sourced and documented.
Write your letter of explanation now, while the details are fresh. A strong one is brief, factual, and covers three things:
- What caused the bankruptcy, such as medical debt, divorce, or a business failure.
- Whether the cause was outside your control or has since been corrected.
- How your finances are different today: steadier income, lower debt, savings, and on-time history since discharge.
Sign it, date it, and keep it consistent with your court papers. Contradictions between the letter and the filing raise questions.
Be wary of anyone who promises a specific score gain by a specific date. Scores vary by individual file, and the mix of accounts, balances, and timing all play a part. What lenders weigh most is the pattern: on-time payments, low balances, and no new derogatory items.
Step 5: Choose the Loan Program That Fits Your Situation
Match the program to your circumstances rather than starting with the lowest advertised rate.
- FHA: flexible on credit and lower minimum scores, often a common starting point after Chapter 7 or 13.
- VA: for eligible veterans and service members, with no standard down payment requirement. Your Certificate of Eligibility can usually be pulled electronically with your Social Security number and date of birth. For second-tier (bonus) entitlement, the math is the county loan limit times 25% for the maximum guarantee, minus any entitlement already used, and then times four for the zero-down purchase limit.
- Conventional: requires the longer wait, but can offer more competitive mortgage insurance pricing once you qualify.
- USDA: for homes in eligible rural areas, with income limits.
- Non-QM or bank statement: for self-employed filers whose tax returns understate income, or whose seasoning falls short of agency rules.
Lenders set their own overlays above agency minimums, which is why one lender may decline a file that another approves. Duane Buziak, as an independent broker, has wholesale relationships with lenders whose programs differ. He does not represent any of them, and the table reflects documented program focus, not a guarantee of approval.
| Wholesale lender | Documented specialty | Where it may fit after bankruptcy | Seasoning and overlays |
|---|---|---|---|
| Deephaven Mortgage | Non-QM and alternative-document lending | Self-employed filers needing flexible income documentation | Set by lender; confirm per scenario |
| Angel Oak Mortgage Solutions | Non-QM and alternative-document lending | Borrowers outside agency waiting periods or documentation rules | Set by lender; confirm per scenario |
| First National Bank of America (FNBA) | Flexible manual-underwrite scenarios | Complex files other Non-QM shops decline | Set by lender; confirm per scenario |
| The Loan Store | Lean, aggressive agency-product pricing | Agency-eligible borrowers past their waiting period | Agency minimums plus lender overlays |
Carrington Mortgage Services is another lender Duane Buziak can access wholesale; whether it suits your file depends on its current overlays, which he checks during pre-qualification.
Step 6: Work Out Your Numbers With a Worked Dollar Example
The following is an illustration, not a quote. Suppose you buy a $300,000 home with an FHA loan at 3.5% down, and your gross monthly income is $7,500.
- Down payment: 3.5% of $300,000 is $10,500, leaving a base loan of $289,500.
- Upfront MIP: 1.75% of $289,500 is $5,066.25, which can be financed. The total loan becomes $294,566.25. (Verify the current rate in HUD Handbook 4000.1.)
- Principal and interest: at an illustrative 7.00% fixed for 30 years, about $1,960 per month. Actual rates vary; Freddie Mac’s Primary Mortgage Market Survey offers general market context, but it does not reflect rates for any individual borrower.
- Annual MIP: as of 2026, a 30-year FHA loan at this loan-to-value is commonly charged 0.55% annually: $289,500 times 0.0055 is about $1,592 per year, or roughly $133 per month.
- Taxes and insurance: assume $500 per month combined.
Total housing payment: about $2,593. Add $450 in other monthly debts (a car payment and a card) for $3,043 in total obligations. Divided by $7,500, that is a debt-to-income ratio of about 40.6%, under the 43% benchmark commonly cited for FHA. Files above that can still be approved with compensating factors, but expect closer review.
Cash to close: your $10,500 down payment plus estimated closing costs of about 3% ($9,000) is roughly $19,500. If the seller agrees to a credit toward costs, within the limit FHA allows (as of 2026, up to 6% of the price), that credit can cover the closing costs. That leaves a no-out-of-pocket closing option beyond your down payment, though seller credits depend on the negotiated contract.
Step 7: Get Pre-Qualified Through an Independent Broker and Move to Application
Duane Buziak offers pre-qualification with no impact on your credit. Send over what an underwriter would ask for anyway:
- Your bankruptcy petition, schedules, and discharge or dismissal order
- Two years of income documents, such as W-2s and tax returns
- Two months of recent bank statements (or 12 to 24 for bank-statement programs)
- Your letter of explanation
- A government ID, and for VA borrowers, the details needed to pull your Certificate of Eligibility
The advantage of a broker is access. Calling one lender gives you that lender’s overlays and nothing else. Duane Buziak can take one application and compare wholesale options across lenders on the roster, including UWM, PennyMac, Newrez, Carrington, and Deephaven, matching your seasoning, credit pattern, and income type to the guidelines that fit. He works as an independent broker with wholesale relationships, not as a division of any of them.
Once you have a pre-qualification, bring in your realtor early so offers match your approved range and the contract timeline fits your loan type. Then keep your finances stable until closing: no new accounts, no large purchases, no job changes without talking to Duane first, and no moving money around without a paper trail.
Mortgage After Bankruptcy FAQ
What is the shortest waiting period to get a mortgage after bankruptcy?
The shortest period is generally about one year, for Chapter 13 filers on FHA or VA with on-time plan payments and court or trustee approval. Chapter 7 is commonly two years for FHA and VA as of 2026, and extenuating circumstances can shorten some waits.
Can I get a mortgage while still in Chapter 13?
Yes, in many cases. FHA and VA generally require at least a year of satisfactory payments and written permission from the trustee or court. Conventional and USDA rules differ.
Does the 7-year credit reporting period equal the mortgage waiting period?
No. Credit reporting duration and mortgage seasoning are separate, and most waiting periods are shorter than the time a bankruptcy stays on your report.
What is the difference between discharge and dismissal?
A discharge releases you from eligible debts, while a dismissal ends the case without that release. Lenders often apply longer waits after a dismissal.
Will my interest rate be higher after bankruptcy?
Often, but not always. Pricing depends on credit score, down payment, loan type, and lender, so it varies by individual file. A broker can compare wholesale pricing across lenders.
How much down payment do I need after bankruptcy?
FHA allows 3.5% down with a qualifying credit score as of 2026. VA may require none for eligible borrowers, and Non-QM programs commonly ask for more.
Can a co-borrower help me qualify?
Sometimes. A co-borrower’s income can improve your debt-to-income ratio, but the lender reviews both credit profiles, and the bankruptcy still has to meet the program’s waiting period.
Are Non-QM loans available after bankruptcy?
Yes. Some Non-QM programs accept shorter seasoning than agency loans, but they are priced differently, and guidelines vary by lender.
Does Carrington work with borrowers after bankruptcy?
Carrington Mortgage Services is a wholesale lender Duane Buziak can access, and eligibility depends on the lender’s current overlays and your file. A broker checks those before you commit.
Can a broker get me a wholesale rate I cannot get by calling a lender directly?
Yes, a broker can access wholesale pricing and programs through lender relationships, and can compare several lenders with one application. Calling a single lender shows you only that lender’s guidelines.
Confirm Your Date, Then Call Duane Buziak
Your next move is small: find the discharge or dismissal date on your court papers and write it down. With that one date, Duane Buziak can tell you quickly which programs are open now and which are a few months away.
Your dream home is within reach: discover how wholesale mortgage rates can put more money back in your pocket while you secure the financing you need. Get your personalized rate estimate today with no credit impact and see exactly what you qualify for with the Mortgage Maestro’s expert guidance. You can also reach Wholesale Mortgage Rates by Duane Buziak at 804-212-8663.