Bankruptcy
Bankruptcy is a legal process for discharging or reorganizing debts that creates a waiting period before a new mortgage.
What Bankruptcy means
FHA and VA generally require two years after a Chapter 7 discharge; conventional requires four. Chapter 13 may allow buying during the plan with trustee approval.
Florida example
A Florida buyer two years past a Chapter 7 discharge, with rebuilt credit, qualifies for FHA financing. Re-established tradelines and on-time payments make underwriting comfortable with the recovery.
What it means for a loan
Bankruptcy is a legal process that clears or reorganizes debt. It stays on your credit report for years and affects when you can buy.
Most loans set a waiting period after a bankruptcy is discharged.
Rebuilding after one
Once the waiting period passes and you rebuild credit, you can qualify again. FHA and VA loans often allow shorter waits.
We help buyers recover after bankruptcy. Reach out and we will map your path back to owning.
Related program: Learn more →
Verify the details for your own situation against these government and agency sources: IRS ITIN overview and CFPB non-QM explainer.