DYK: Filing for Bankruptcy Doesn’t Keep You from Getting Approved for a Mortgage?

Getting Approved for a Mortgage

There’s a misconception that filing for bankruptcy means a lender will not approve you for a mortgage loan. Not necessarily true. While you will have to wait until the judge discharges the bankruptcy, there are no rules that exclude you from getting any type of loan after a bankruptcy. Keep reading to find out how long you will need to wait to qualify. Plus, discover bankruptcy-friendly loan programs. 

Waiting to Get a Loan After Chapter 7 and 13 Bankruptcies

How long you must wait to qualify for a mortgage after bankruptcy depends on the type of bankruptcy and the type of loan. Here’s the breakdown by bankruptcy type:

  • Chapter 7: Wait four years after the judge dismisses or discharges the bankruptcy to qualify for a conventional loan; three years for a USDA loan, and two years for an FHA or VA loan.
  • Chapter 13: Wait four years after the court dismisses the bankruptcy for a conventional loan; or if they discharge the bankruptcy instead, it’s four years from your filing date and two years from the dismissal date. USDA only requires a one-year waiting period after discharge or dismissal following Chapter 13. With an FHA or VA loan, you only need the court to discharge or dismiss the bankruptcy before applying.

Let Midland Mortgage Corporation Connect You with Bankruptcy-Friendly Loan Programs

At Midland Mortgage Corporation, we know how stressful bankruptcy can be, and we don’t believe it should keep you from being a homeowner as soon as possible. When you connect with our consultants, we will help you prepare to secure the best rates for your mortgage loan the moment your waiting period is over.

Our experienced consultants know all the tips and tricks to increase your credit score fast and boost your chances of a successful loan application while you wait. Contact Midland Mortgage Corporation today to learn how to get a mortgage following a bankruptcy.

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