Is It Possible To Get A Mortgage After Bankruptcy?

If you’ve filed for bankruptcy or are considering filing for bankruptcy, you’re likely worried about your post-bankruptcy housing options. 

Filing for bankruptcy doesn’t mean that you’ll never be able to get a mortgage again. In some circumstances, you may be able to reapply and be approved for a mortgage, even after bankruptcy.

There are things that some homeowners can do to improve their chances of getting approved for another loan in the future. As well, for homeowners who haven’t yet pursued bankruptcy, we recommend exhausting all other options beforehand.

An experienced foreclosure attorney can help you navigate the complicated process. Joshua Denbeaux has been working as a foreclosure attorney in New Jersey since 2008 and has worked with thousands of homeowners. Schedule a free consultation today to learn more about how Denbeaux might be able to help you.

Types of Bankruptcy

There are two different types of bankruptcy that are common for consumers and homeowners. The kind of bankruptcy you file for impacts how soon you can get a mortgage after bankruptcy. 

Chapter 7

Chapter 7 bankruptcy is the most common kind of bankruptcy. With this type of bankruptcy, your qualifying debt is liquidated or cleared. It’s important to note that it can take longer to get a mortgage after chapter 7. You will likely need to wait a few years after the court dismisses or disqualifies your bankruptcy to qualify for a loan. 

Chapter 13

Chapter 13 can sometimes be considered a less serious type of bankruptcy from the perspective of a lender because ultimately, the lender still gets paid. Instead of clearing your debt, it will be reorganized, and you’ll have to make scheduled payments to your creditors. Typically, a chapter 13 bankruptcy doesn’t impact your credit score as much as a chapter 7 bankruptcy. 

With a chapter 13 bankruptcy, the timeline for how soon after bankruptcy you can get a mortgage depends on how the court handles your bankruptcy and what kind of loan you apply for. For some loans, the only waiting period required is until the court rules on your bankruptcy filing.  

How to Apply for a Mortgage After Bankruptcy

There are no additional requirements for mortgage qualifications after bankruptcy, but there are some tactics you can use to give yourself a better chance of qualifying for a loan.

Rebuild Your Credit

Bankruptcy can lower your credit score for a number of years, depending on the type of bankruptcy you filed for. Chapter 7 bankruptcy can stay on your credit report for ten years, and chapter 13 bankruptcy can remain on your credit report for up to seven years.

It’s recommended to improve your credit before applying for another mortgage because the better credit you have, the better interest rate you can qualify for. There are a number of ways to help improve your credit score, including paying your bills on time and catching up on past-due payments.


Starting a savings account can help your mortgage application in several ways. Having savings in your back pocket often makes you more appealing to lenders, improving your chances of getting your loan application approved. Savings also allow you to make a larger down payment, which can help you get a lower interest rate on your loan and save you a lot of money in the long run. 

Types of Loans

Depending on your particular situation, you may be able to apply for different types of loans. This is by no means an exhaustive list of all mortgage options, but these are some of the most common choices you’ll find. 

Conventional Mortgage

A conventional mortgage is commonly thought of as the most difficult type of home mortgage to get after bankruptcy. Qualifying for a conventional loan usually takes the longest time, but working with an attorney may help you qualify for a mortgage sooner. Conventional mortgages also tend to require higher credit scores and larger down payments than other loan options.

FHA Loan

An FHA loan is a government loan insured by the Federal Housing Administration. These loans tend to have lower credit score requirements and flexible down payment requirements, dependent on your credit score. It’s important to note that to qualify for an FHA loan, you can’t have incurred additional debt from when you filed for bankruptcy to when you apply for the mortgage, including credit card debt, auto loans, or other debt that is unpaid. 


The US Department of Agriculture provides USDA loans. These loans are only available in certain rural areas, and there are income restrictions that you must meet to qualify for this type of loan. USDA loans are backed by the government, which means they tend to be easier to qualify for than conventional mortgages and may not require a down payment. 

VA Loans

Only veterans and active duty service members are eligible for VA loans. There is no standard credit score or down payment requirement for a VA loan. These requirements can vary according to the lender. 

Get a Mortgage After Bankruptcy With Foreclosure Attorney Help

If you are considering filing for bankruptcy, you should consider consulting an attorney immediately. Working with an attorney can help you better understand your options and ease your stress in navigating this complicated legal procedure. Some homeowners may even have other options to delay or stop foreclosure without having to pursue bankruptcy.

If you have tried all other resources and are still wondering how to get a mortgage loan after bankruptcy, an attorney can help you through the process. Foreclosure attorneys have in-depth knowledge of home bankruptcy and how it impacts you in the long run. A trusted attorney may have reliable recommendations regarding the best way to attain a home mortgage after bankruptcy. 

Because every situation is different, advice that you find online may not be the best decision for you. Consulting an attorney may help ensure that you take the best steps for your situation. 

Denbeaux & Denbeaux Law has represented thousands of New Jersey homeowners needing debt relief assistance. Our goal is for our clients to be in a better place than when they first came to us. Contact us today to find out how Josh Denbeaux may be able to help you.

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