Mortgages After Bankruptcy

It is generally possible to qualify for an FHA (Federal Housing Agency) mortgage loan after a period of time after the filing of a Chapter 13 or Chapter 7 bankruptcy.  FHA mortgages are offered by individual lenders and insured by the FHA.

Chapter 13 Bankruptcy 

The FHA handbook states that a FHA mortgage loan may be approve after 1 year of payments under a Chapter 13 plan. The Chapter 13 plan payment performance must have been “satisfactory” and all required payments must “have been made on time.”

Chapter 7 Bankruptcy

The FHA generally will consider a mortgage 1 to 2 years after a Chapter 7 discharge. The borrower must also show  that since the bankruptcy, he was either 1. re-established good credit or 2. chosen not to incur new credit obligations.

In some cases, the FHA may consider a mortgage 1 year after a Chapter 7 discharge if the borrower “can show that the bankruptcy was caused by extenuating circumstances beyond the Borrower’s control and has since exhibited a documented ability to manage their financial affairs in a responsible manner.”

Fannie Mae Mortgages

Fannie Mae will generally not buy mortgages until 2 years after a Chapter 13 case is over or until 4 years after a Chapter 7 case.