Mortgage After Bankruptcy: How Long to Wait 2026 | Get Approved
YES, you CAN get a mortgage after bankruptcy in 2026! Waiting periods: FHA: 2 years (Chapter 7), 1 year (Chapter 13 with payments). Conventional: 4 years. VA: 2 years. Requirements: Rebuild credit to 640+, stable income, no new late payments. Rates: 6.75%-7.50% (slightly higher than no-bankruptcy). Check if you qualify NOW. Related: Improve credit score guide.
⏰ Waiting Periods (February 2026):
FHA Loan: 2 years (Chapter 7), 1 year (Chapter 13 with on-time payments)
Conventional: 4 years (Chapter 7), 2 years (Chapter 13)
VA Loan: 2 years (both Chapter 7 & 13)
USDA Loan: 3 years (Chapter 7), 1 year (Chapter 13)
Credit Score: Rebuild to 640+ (FHA), 660+ (conventional)
💡 Shortest path: FHA + Chapter 13 = 1 year wait!
Waiting Period Breakdown (All Loan Types)
| Loan Type | Chapter 7 | Chapter 13 | Credit Score |
|---|---|---|---|
| FHA | 2 years | 1 year* | 620-640+ |
| Conventional | 4 years | 2 years | 660+ |
| VA | 2 years | 2 years | 620+ |
| USDA | 3 years | 1 year* | 640+ |
*Chapter 13: Must have 12+ months of on-time plan payments + court approval to apply for mortgage.
🎯 Check If You Qualify After Bankruptcy!
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Rebuilding Credit After Bankruptcy (640+ Goal)
Year 1: Foundation (500-580 score)
- Secured Credit Card: $200-$500 deposit, use <30%, pay in full monthly
- Credit Builder Loan: $500-$1,000 loan, builds payment history
- Become Authorized User: Family member adds you to their card (instant boost)
- Pay All Bills On Time: Rent, utilities, phone (100% on-time = critical)
- Expected Score: 500 → 580 (+80 points)
Year 2: Growth (580-640 score)
- Unsecured Credit Card: Upgrade from secured, increase limit to $1,000-$2,000
- Installment Loan: Small personal loan or car loan (diversifies credit mix)
- Keep Utilization Low: <10% on all cards (optimal for score boost)
- No New Late Payments: 24 months perfect payment history
- Expected Score: 580 → 640 (+60 points) = MORTGAGE READY!
Real Example: FHA Loan 2 Years After Chapter 7
Borrower Profile:
Bankruptcy: Chapter 7 discharged March 2024
Application Date: April 2026 (2 years + 1 month later)
Credit Score: 645 (rebuilt from 480)
Income: $65,000/year (stable W-2 job)
DTI: 38% (no new debt since bankruptcy)
Down Payment: $7,000 saved (3.5% FHA)
Loan Details:
Purchase Price: $200,000
Loan Type: FHA 30-year fixed
Down Payment: $7,000 (3.5%)
Loan Amount: $193,000
Interest Rate: 7.125% (slightly higher due to bankruptcy)
Monthly P&I: $1,300
FHA MIP: $161/month
Total Payment: $1,461/month (+ taxes/insurance)
✅ APPROVED! Fresh start in homeownership! 🎉
⏰ Ready to Apply After Bankruptcy?
2+ years wait complete? Credit 640+? Get pre-approved NOW!
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Common Mistakes to Avoid
❌ DON'T Do This:
- Apply Too Early: Wait full 2 years (FHA) or 4 years (conventional). Early = automatic denial.
- Miss Payments: Even ONE late payment after bankruptcy = denial. Set up autopay!
- Max Out Credit Cards: Keep utilization <30% (ideally <10%).
- Take On New Debt: No car loans, personal loans 6-12 months before applying.
- Change Jobs: Lenders want 2+ years stable employment. Don't switch jobs!
✅ DO This Instead:
- Wait Full Period: 2 years FHA, 4 years conventional (from discharge date).
- Perfect Payment History: 24+ months no late payments (rent, utilities, credit cards).
- Rebuild Credit to 640+: Secured card, credit builder loan, authorized user.
- Save Down Payment: $7K-$15K (FHA 3.5%-5%).
- Get Pre-Approved Early: Check eligibility 3-6 months before applying.
Timeline: Bankruptcy to Homeownership
Month 0: Bankruptcy Discharge
Chapter 7 or 13 discharged. Credit score drops to 450-550. Start rebuilding immediately!
Month 1-12: Rebuild Foundation
Secured credit card, credit builder loan, authorized user. Pay everything on time. Score: 500-580.
Month 13-24: Build Momentum
Unsecured credit card, installment loan. Keep utilization <10%. Perfect payment history. Score: 580-640.
Month 24+: Apply for Mortgage! 🎉
FHA eligible (2 years). Credit 640+. Down payment saved. Get pre-approved. Buy home!