Mortgage After Bankruptcy - Bankruptcy Home Loans

Bankruptcy can be a significant financial setback, but it doesn't permanently prevent you from obtaining a mortgage. Traditionally, a borrower would have to wait at least a few years after a bankruptcy to even apply for a mortgage. Today, things are different. Alpine Mortgage specializes in helping borrowers who have had a recent bankruptcy refinance their mortgage or secure a new home loan. The availability of home loans after bankruptcy and the waiting period before you can apply depend on the type of bankruptcy filed and the mortgage program you are considering.

Bankruptcy Mortgage

Types of Bankruptcies 

Chapter 7 Bankruptcy. Named for Chapter 7 of the Bankruptcy Code, this type of bankruptcy involves liquidating your assets to pay off your debts giving you a clean slate to start your financial life over. 

Chapter 13 Bankruptcy. This option allows you to set up a repayment plan to pay your debts. Consumers enter a repayment plan for their debts rather than liquidating their debts.

Bankruptcy Mortgage Options

Below are the bankruptcy waiting periods and maximum Loan-to-Value (LTV) percentages for conventional, FHA, VA, USDA and Non QM loans.

Loan TypeChapter 7 Waiting PeriodChapter 13 Waiting PeriodMax LTV
Conventional4 years2 years97%
FHA2 yearsNone96.5%
VA2 yearsNone100%
USDA3 years1 year100%
Conventional Loans
  • 4 year waiting period after discharge of a Chapter 7 bankruptcy. This period can reduce to 2 years if there are extenuating circumstances
  • 2 year waiting period after discharge of a Chapter 13 bankruptcy
  • 3% minimum down payment
  • 620 Minimum credit score
FHA Loans
  • 2 year waiting period after discharge of a Chapter 7 bankruptcy
  • For Chapter 13, there is no waiting period after 12 months of payments in bankruptcy have been made
  • 3.5% minimum down payment (10% down payment if credit score is below 580)
  • 500 minimum credit score
VA Loans
  • Veterans may apply for a VA loan after 2 years from a Chapter 7 discharge and 1 year from a Chapter 13 discharge
  • No minimum down payment
  • No minimum credit score
USDA Loans
  • 4 year waiting period after discharge of a Chapter 7 bankruptcy
  • 1 year waiting period after discharge of a Chapter 13 bankruptcy
  • Income and rural location limits apply
Non QM Loans
  • No waiting periods
  • Minimum credit score and down payment requirements vary depending on the loan program

How to Get Pre-approved for a Bankruptcy Home Loan

Getting pre-approved for a bankruptcy home loan is quick and easy with our online Loan Application. After completing the application, you will receive instructions on how to upload your documents. For a list of documents you will need to upload, see our Pre-approval Document Checklist.

We understand that life's circumstances may have caused you to file for a bankruptcy. Alpine Mortgage realizes that these people who have had a bankruptcy should not have to wait years to enjoy the right of home ownership or to utilize the equity in a home. With this in mind, Alpine Mortgage has a variety of bankruptcy loan programs designed especially for you! First time home buyers and current homeowners are eligible to secure a mortgage after bankruptcy. Our bankruptcy loan are available in the following states: California, Connecticut, Florida, New Jersey, New York, Pennsylvania and Texas.

Call us today at (800) 876-LOAN to speak with one of our bankruptcy mortgage specialists or click here to have one of our bankruptcy loan specialists contact you.

You can also apply online now to see if you qualify for one of our bankruptcy home loans.

Bankruptcy Loans FAQs

To improve your chances, focus on rebuilding your credit score. You can start by obtaining a secured credit card, making all payments on time, and keeping your credit utilization low. Additionally, saving for a larger down payment can also demonstrate financial stability and responsibility.

Bankruptcy can significantly lower your credit score and will appear on your credit report for 7 to 10 years depending on whether you filed for Chapter 7 or Chapter 13 bankruptcy. However, the impact of bankruptcy on your score diminishes over time, especially if you engage in good credit practices post-bankruptcy.

Lenders will look for evidence that you have managed your finances responsibly after bankruptcy. This includes maintaining a steady job, a stable income, low debt-to-income ratios, and a history of timely payments.

Common pitfalls include applying for credit too soon after bankruptcy, taking on too much new debt, and not checking your credit report for errors. Ensure your credit report is accurate and up-to-date, avoid high-cost loans, and consult with a financial advisor to plan your post-bankruptcy financial strategies carefully.

Bankruptcy Tools & Advice