How to Get Approved for a Mortgage with a Bankruptcy

There are two types of bankruptcy, commonly known as Chapter 7 and Chapter 13.  Chapter 7 wipes out most of your debt by liquidating what you have in order to satisfy creditors. The other option is Chapter 13, which restructures your debts so that you can pay them off over a period of time.  For a homeowner that is drowning in debt, Chapter 7 may be the best option since they would be allowed to keep the home.

What are the waiting periods to apply for a mortgage after a bankruptcy?

• 2 year waiting period for Chapter 7 Bankruptcy discharged date to qualify for FHA and VA mortgages
• 3 year waiting period after Chapter 7 Bankruptcy, foreclosure deed in lieu of foreclosure, short sale to qualify for USDA Loans
• 3 year waiting period to qualify for VA Loans after Chapter 7 Bankruptcy discharged date, foreclosure, deed in lieu of foreclosure, short sale
• 4 year waiting period to qualify for Conventional Loans after a deed in lieu of foreclosure and/or short sale
• 7 year waiting period to qualify for a Conventional Loan after a regular foreclosure
• Zero  waiting period required after Chapter 13 Bankruptcy discharge date on VA and FHA Loans
• Borrowers can qualify for FHA and VA Loans during Chapter 13 Bankruptcy Repayment Plan with Trustee Approval and Manual Underwriting
• 2 year waiting period after the Chapter 13 Bankruptcy discharged date to qualify for Conventional Loans
• 4 year waiting period after Chapter 13 Bankruptcy dismissal date to qualify for Conventional Loans