{"id":286814,"date":"2021-01-27T10:44:14","date_gmt":"2021-01-27T15:44:14","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/after-bankruptcy\/buying-a-house-after-bankruptcy-how-long-will-you-need-to-wait.html"},"modified":"2026-07-20T11:39:56","modified_gmt":"2026-07-20T16:39:56","slug":"buying-a-house-after-bankruptcy-how-long-will-you-need-to-wait","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/after-bankruptcy\/buying-a-house-after-bankruptcy-how-long-will-you-need-to-wait.html","title":{"rendered":"How Soon Can You Buy a House After Bankruptcy?"},"content":{"rendered":"\n
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How Soon Can You Buy a House After Bankruptcy?<\/h1>\n\n
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\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

You can buy a house after bankruptcy, often within one to two years for government-backed loans<\/span>. The waiting period<\/span> depends on the type of bankruptcy<\/span> you filed, the loan you want, and whether you have extenuating circumstances<\/span>. It takes just as long to get a bank to approve a mortgage after bankruptcy regardless of whether you pursue a conventional loan<\/span> or government-backed financing.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Life can return to normal after filing bankruptcy<\/span>, even when it comes to getting a mortgage. While it\u2019s normal to expect a delay in applying for a home loan<\/span> after a bankruptcy discharge<\/span>, it might not be as long as many would believe.<\/p>\n

In general, people who file for bankruptcy have to wait about one to two years after their discharge date<\/span> to buy a home. Banks may be reluctant to lend money to people who have filed a recent bankruptcy because they fear they won\u2019t be able to repay the loan, but that doesn\u2019t mean a mortgage offer won\u2019t ever be available again. Since there are limits on how often you can file a Chapter 7 or Chapter 13 bankruptcy<\/span>, mortgage companies know that the odds of a borrower<\/span> filing for another bankruptcy in the immediate future are low.<\/p>\n

This article explores and explains your mortgage options<\/span> after filing for bankruptcy. It also discusses how filing for bankruptcy can affect your\u00a0eligibility<\/span>\u00a0for a home <\/span>loan<\/span> program<\/span>. If you recently filed for bankruptcy\u00a0and are wondering about your\u00a0loan options<\/span>, it can be helpful to speak to an experienced bankruptcy attorney<\/span><\/a>.<\/p>\n

Is There a Waiting Period<\/span> To Buy a Home After a Bankruptcy Discharge<\/span>?<\/h2>\n

Most property owners who file for bankruptcy want to keep their home and file for a Chapter 13 bankruptcy<\/span>. For the most part, people looking to buy a home after bankruptcy are those who received a Chapter 7 discharge<\/span>.<\/p>\n

In a Chapter 7 bankruptcy<\/span>, the court discharges most, if not all, of your debt. Once your bankruptcy is complete, you can acquire new debt<\/span>. That may make many lenders<\/span> wary of approving loans for people who recently filed bankruptcy<\/span>, especially mortgage <\/span>lenders<\/span>.<\/p>\n

While there is no legal or technical waiting period<\/span> to apply for a home loan<\/span>, it makes sense to rebuild credit<\/span> before applying for a mortgage. Banks will want to see your payment history<\/span> on any mortgages or loans you have prior to filing for bankruptcy. If the bank\u2019s underwriting<\/span> department sees that your home was in foreclosure<\/span> or that you had to file bankruptcy<\/span> within the last couple of years, it will most likely reject your application.<\/p>\n

Within weeks or months of your bankruptcy discharge<\/span>, you\u2019ll start receiving pre-approval<\/span> notices from credit card companies, auto lenders<\/span>, and mortgage companies. Unfortunately, these pre-approval<\/span> letters do not guarantee that the finance company will approve you for a loan. In many instances, these offers are made by predatory lenders<\/span> that charge outrageous interest rates and impose onerous terms.<\/p>\n

For these reasons, most bankruptcy lawyers recommend that you wait a year or two before you try to buy a new home. The waiting period<\/span> largely depends on the type of bankruptcy<\/span> you filed and the type of mortgage<\/span> you want to obtain.<\/p>\n

The Type of Bankruptcy<\/span> You File Impacts How Long You Should Wait To Buy a House<\/h2>\n

The type of bankruptcy<\/span> you file will determine how long you must wait to take out a mortgage. In general, lenders<\/span> require borrowers<\/span> to wait one to two years after a Chapter 13 <\/span>bankruptcy<\/span> discharge<\/span> and two to three years after a Chapter 7 <\/span>bankruptcy<\/span> discharge<\/span> for government-backed loans<\/span> such as FHA, VA, or USDA mortgages.<\/p>\n

For conventional loans<\/span>, the waiting period<\/span> is often\u00a0longer. Some lenders<\/span> may approve a mortgage sooner than the above timeframes if you can demonstrate extenuating circumstances<\/span>.\u00a0<\/p>\n

It\u2019s also easier to get a mortgage when the purchase price<\/span> of the house is lower. The hope is that you won\u2019t require any down payment<\/span> assistance<\/span> and that a modest mortgage will be within your means. Working hard to repair your credit score<\/span> also increases your chances of approval and homeownership<\/span>.<\/p>\n

How and Why\u00a0Bankruptcy Hurts\u00a0Your Chances of Getting a Mortgage<\/h2>\n

Regardless of which\u00a0type of bankruptcy<\/span><\/a>\u00a0you file, getting a mortgage after your discharge may be difficult. This is especially true for first-time <\/span>homebuyers<\/span>. A bank wants to know that a borrower<\/span> can repay their loan before they\u2019ll approve them for a mortgage.<\/p>\n

Seeing a bankruptcy on an applicant\u2019s credit report<\/span> is a red flag for mortgage <\/span>lenders<\/span>. A bank is much more likely to approve a mortgage for someone with no bankruptcies on their credit report<\/span> than someone who filed a Chapter 7 or a Chapter 13 bankruptcy<\/span>. Let\u2019s take a closer look at the two types and what their differences may mean.<\/p>\n

Borrowers<\/span> With a Chapter 7 Bankruptcy<\/span> on Their Credit Report<\/span><\/h3>\n

Mortgage loans<\/span> are often the biggest loan a borrower<\/span> will\u00a0commit to in their lifetime. When prospective homeowners have a\u00a0Chapter 7 or\u00a0Chapter 13 bankruptcy<\/span>\u00a0on their\u00a0credit history<\/span><\/a>, banks are hesitant\u00a0to lend them money.<\/p>\n

When a loan officer sees a\u00a0Chapter 7 bankruptcy<\/span><\/a>\u00a0on someone\u2019s credit report<\/span>,\u00a0it raises concerns\u00a0that the borrower<\/span> has a problem managing their money. Bankers fear that someone who has filed for bankruptcy once is more likely to file again, and they don\u2019t want to end up with a large unpaid loan.<\/p>\n

Under\u00a0federal bankruptcy law<\/a>, you must wait at least eight years to refile for Chapter 7 bankruptcy<\/span>.\u00a0That can seem like an eternity when you\u2019re trying to buy a home. Most mortgages are 30-year loans, and lenders<\/span> want to see a bankruptcy filer reestablish their credit before they approve them.<\/p>\n

It makes\u00a0sense that banks would be reluctant to approve a mortgage for someone who filed a Chapter 7 bankruptcy<\/span>. Chapter 7 filers don\u2019t have to repay their debts once the court approves their bankruptcy petition.<\/p>\n

Applicants With a Chapter 13 Bankruptcy<\/span> on Their Credit History<\/span><\/h3>\n

If you file for\u00a0Chapter 13<\/a>, the bankruptcy trustee designs a short-term repayment plan<\/span>, usually lasting three to five years. While people who file for Chapter 7 receive a discharge for their outstanding debts, that isn\u2019t the case for people who file for Chapter 13.<\/p>\n

With a Chapter 13 bankruptcy<\/span>, the trustee will look at your\u00a0total debts and assets<\/a>\u00a0and determine how much (if any) of your debts you must repay. Secured creditors, such as mortgage companies and auto lenders<\/span>, take priority. They usually recover most of the money they lent the filer.<\/p>\n

Unsecured creditors, such as credit card companies, often receive a percentage of what the debtor owes. It depends on how much the\u00a0bankruptcy trustee<\/a>\u00a0believes the filer can afford to repay while still having money to pay for necessities.<\/p>\n

When a mortgage <\/span>lender<\/span> sees that someone filed for\u00a0Chapter 13 bankruptcy<\/span>, they may be concerned that the person could be predisposed to refile\u00a0if they encounter financial issues. They may also\u00a0fear that the person will be unable to afford their mortgage while on their\u00a0Chapter 13 repayment plan<\/span><\/a>. No loan officer wants to\u00a0approve a loan that will never be paid.<\/p>\n

You May Need a Credit Score<\/span> of 500 or Higher To Buy a House<\/h2>\n

While loan waiting periods<\/span> and loan approval are essential for people with a recent bankruptcy, some loan officers will not consider giving you a mortgage until you improve your\u00a0credit score<\/span><\/a>. This can take time and may require that you open a secured credit card<\/span> and make on-time payments<\/span> for a year or longer. You may also consider taking out a small personal loan<\/span> through your credit union or local bank to show that you can make your payments on time.\u00a0<\/p>\n

Credit scores<\/span> can\u00a0range from 300 to 850<\/a>. The type of loan<\/span> you seek will determine the credit score<\/span> requirements<\/span> to qualify for a mortgage.<\/p>\n

For each type of loan<\/span> below, you need the following minimum <\/span>credit scores<\/span>:<\/p>\n