Credit Recovery
Getting a Mortgage After Bankruptcy
Program-by-program seasoning periods after Chapter 7 and Chapter 13, what counts as re-established credit, and how to find a lender that does not pile overlays on top of agency rules.
Quick answer
A past bankruptcy does not permanently disqualify you from getting a mortgage. Each loan program has a specific seasoning period (waiting time) after discharge or dismissal. We work with lenders going to the most permissive program minimums where the borrower profile fits.
Chapter 7 Seasoning (Post-Discharge)
| Program | Minimum waiting period |
|---|---|
| FHA | 2 years (program minimum); some lenders impose overlay to 3 years |
| VA | 2 years (program minimum) |
| USDA | 3 years |
| Conventional (Fannie / Freddie) | 4 years; 2 years with documented extenuating circumstances |
| Jumbo | 7 years typical; some lenders shorter |
Chapter 13 Seasoning (Repayment Plan)
| Program | Minimum waiting period |
|---|---|
| FHA | 12 months of on-time plan payments + court permission (during plan), or 2 years post-discharge |
| VA | 12 months of on-time plan payments + court permission |
| Conventional | 4 years from discharge OR 2 years from dismissal |
| Jumbo | 4 to 7 years typical |
What "Post-Discharge" Means
The seasoning clock starts on the official discharge date listed on your bankruptcy paperwork, not on the filing date. The discharge date is the day the court officially extinguishes your dischargeable debts. For Chapter 13, if the case is dismissed rather than discharged (for example, plan payments stopped), the dismissal date is used and the seasoning is often longer.
What Lenders Want to See After the Seasoning Period
- Re-established credit: typically 3 to 4 trade lines reporting in good standing for 12 months or more.
- No new late payments or derogatory marks since the bankruptcy.
- Stable employment and income (typically 2 years of work history in the same line of work).
- Down payment and reserves in documented and seasoned accounts.
- FICO at program minimum: 580 for FHA, 620 for conventional, 580 to 620 for VA (program is 0 minimum but most lenders require 580+).
Lender Overlays Are Common
Many lenders impose stricter requirements than the program minimum (for example, requiring 4-year FHA seasoning instead of the 2-year program minimum, or 640 FICO instead of 580). These are lender overlays, not agency rules. We work with lenders that follow program minimums where the borrower profile fits.
Re-Establishing Credit After Bankruptcy
Secured credit card
Easiest first trade line. You deposit a small amount (often $200 to $500), and the issuer extends a credit line equal to the deposit. Use 10 percent of the limit each month and pay in full.
Credit-builder loan
A small installment loan from a credit union, where the proceeds are held in a locked savings account and released to you after you make all the payments. Builds an installment trade line that scores well.
Authorized user on a strong account
Being added as an authorized user on a family member's well-aged credit card with no late payments can immediately add positive payment history and age to your file.
Pay everything else on time, every time
Rent, utilities, cell phone, car loan, student loans. Even one late payment after a recent bankruptcy is a meaningful hit to the file when underwriting looks at credit since discharge.
When Bankruptcy and Foreclosure Both Happened
When you have both events in your past, the longer of the two seasoning periods applies. See getting a mortgage after foreclosure for program-by-program foreclosure, short sale, and deed-in-lieu seasoning.
Improving Your Position Before You Apply
- -12+ months of clean credit since discharge, with all trade lines reporting paid as agreed.
- -FICO 580+ for FHA, 620+ for conventional (program minimums).
- -3 to 6 months of stable employment in the same field.
- -Reserves of 3 to 6 months PITIA after closing, where the program asks for reserves.
- -A clean explanation letter that describes what caused the bankruptcy, what changed, and why it will not happen again.
Frequently Asked Questions
How soon after bankruptcy can I buy a house?+
It depends on the loan program and the chapter. After a Chapter 7 discharge, FHA and VA require 2 years (program minimum), USDA requires 3 years, and conventional requires 4 years (or 2 years with documented extenuating circumstances). After a Chapter 13, FHA and VA allow purchase 12 months into the repayment plan with court approval, or 2 years post-discharge. Conventional is 4 years from Chapter 13 discharge or 2 years from dismissal. We work with lenders going to program minimums where the borrower profile fits.
Does Chapter 7 or Chapter 13 affect this differently?+
Yes. Chapter 7 is a full liquidation discharge and the seasoning clock starts at the discharge date. Chapter 13 is a 3 to 5 year repayment plan, and FHA and VA actually allow a purchase during the plan if you have 12 months of on-time plan payments and the bankruptcy court issues written permission. Conventional is stricter on Chapter 13: 4 years from discharge or 2 years from dismissal.
What is the FHA bankruptcy waiting period?+
FHA program minimums are 2 years from Chapter 7 discharge and 12 months of on-time payments into a Chapter 13 plan (with court permission). Many individual lenders impose overlays that extend these to 3 or 4 years. We work with lenders that follow program minimums where the borrower profile fits.
Can I get a mortgage during an active Chapter 13?+
Yes, on FHA and VA. The requirements are typically 12 months of on-time Chapter 13 plan payments, written permission from the bankruptcy court to incur new debt, and standard credit and income qualifying. Conventional generally does not allow a new mortgage during an active Chapter 13.
Will my FICO score recover enough in 2 years?+
Usually yes, if you re-establish credit deliberately. Most borrowers see FICO rebuild into the 620 to 680 range within 18 to 24 months post-discharge with a secured credit card, a credit-builder loan, and consistent on-time payments on everything else. FHA minimum is 580 (some lenders 620). Conventional minimum is 620 to 640.
What documentation will the lender want?+
You will need the official discharge paperwork or dismissal order, the full list of discharged debts (schedule of creditors), proof of re-established credit (typically 3 to 4 trade lines in good standing), documentation of income and employment, and proof of funds for down payment and reserves. For Chapter 13, you will also need 12 months of paid-as-agreed plan-payment history and written court permission.
Will a past bankruptcy permanently disqualify me?+
No. A past bankruptcy does not permanently disqualify you from getting a mortgage. Once the program seasoning period has passed and you have re-established credit, you can qualify under standard guidelines. We work with lenders going to program minimums where the borrower profile fits.
What if I had a bankruptcy and a foreclosure?+
When both events happened, the longer of the two seasoning periods applies. See our companion page on a mortgage after foreclosure for the program-by-program seasoning periods for foreclosure, short sale, and deed-in-lieu.
Find out where you really stand
A soft-pull pre-approval shows what programs your file qualifies for today and how close you are to a program minimum, without a hard credit hit.
After foreclosure
Program-by-program seasoning
FHA loan rates
2-year post-discharge path
Credit score guide
How underwriters read FICO
Eligibility, rates, and program guidelines vary by lender and are subject to change. This page is general educational information and is not a commitment to lend or an offer of credit. Not all applicants will qualify. Not legal or financial advice. Equal Housing Opportunity.