Finder makes money from featured partners, but editorial opinions are our own. Advertiser disclosure

Getting a mortgage after bankruptcy

Banks will be willing to work with you — but only after the waiting period.

If you’ve filed for bankruptcy in the last seven to 10 years, you’ll likely have to pay higher interest rates on a new mortgage — especially if you can’t put up a large down payment.

Compare mortgage lenders

Compare top brands by home loan type, state availability and credit score. Select See rates to provide the lender with basic property and financial details for personalized rates.

Disclaimer: The partners on Finder's mortgage comparison tables are sorted in alphabetical order.

Name Product Loan products offered State availability Min. credit score
Rocket Mortgage
Not rated yet
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
Apply online for free and lock in your rate for 90 days.
Veterans United
Not rated yet
Veterans United
Conventional, FHA, VA, USDA, Jumbo, Refinance
Available in all states
Veterans United stands out from other lenders for its focus on serving the military community.

What is a bankruptcy discharge?

A bankruptcy discharge is a court order releasing you from your obligation to pay any debts that were included in your bankruptcy filings. Essentially, it means that the bankruptcy process is finished.

Can I get a mortgage after bankruptcy?

As with personal loans and even business loans, but it will be more difficult to get approved after a bankruputcy. you may need to come up with a bigger down payment or deal with higher interest rates. And you won’t be eligible until after a waiting period.

Chapter 7 bankruptcy

You’ll need to wait at least two years before applying for an FHA or VA loan and four year before applying for a conventional loan backed by Fannie Mae, Ginnie Mae or Freddie Mac — the government enterprises that back or buy most conventional loans. If you can prove extenuating circumstances for the bankruptcy, like medical issues or losing your job, the waiting period can be cut to two years.

Chapter 13 bankruptcy

If your bankruptcy is over or you’ve been making payments for more than a year, you can qualify for an FHA or VA loan. To qualify for a conventional mortgage backed by Fannie Mae, Ginnie Mae or Freddie Mac, you’ll need to wait two years after discharge or four years after dismissal.

Tips for applying for a mortgage after bankruptcy

To find a mortgage that works for you:

  • Research lenders. Look for a lender who has offered loans after a bankruptcy discharge in the past. Also, take the time to research reviews and make sure they’re a fair and reliable lender.
  • Compare options. You’ll likely need to pay a higher interest rate, but how much higher can vary greatly from one lender to the next. Comparing multiple lenders can help you find a rate that’s fair.
  • Only apply to one. Every application for a loan appears on your credit file, and serial borrowing is viewed negatively by lenders. Apply only to your top lender, and wait a while before applying to a new one if your application is denied.

How to compare mortgages

When choosing between mortgage providers, compare your options based on:

  • Availability. Not all mortgage companies will be willing to offer a loan to someone who has a bankruptcy discharge on their file. Check if you’re eligible for a mortgage before applying.
  • Interest rates. Even a small difference in the interest rate can add up to thousands over the life of the loan.
  • Fees. These include application fees, origination fees and anything else that might be rolled into the closing costs. You’ll also want to check if you’ll need to pay any fees if you either repay the loan early or refinance in a few years.
  • Features and deals. Some banks will offer special deals if you open a checking or savings account at the same time.

Pros and cons of getting a mortgage with a bankruptcy discharge


  • You might still be able to get a loan. While the terms may be less favorable, it is still possible to get a mortgage.
  • You can refinance when your credit improves. After seven to 10 years, the bankruptcy will be wiped from your credit file, and you may be able to refinance with better terms.


  • Waiting period. In order to get a government-backed loan, you’ll need to wait two to four years after your bankruptcy is completed.
  • Higher interest rate. If you’re approved for a mortgage with a bankruptcy on your credit report, you’ll likely have to pay a high interest rate.

Bottom line

If you’ve filed for bankruptcy in the past, it doesn’t mean you can’t ever get a mortgage again — but it does mean you may need to wait a few years before applying.
If you’re already past the waiting period, compare mortgage lenders to find out what your options are.

Frequently Asked Questions

Picture: Shutterstock

More guides on Finder

Ask a Question provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site