Hello my friends! It’s Wednesday and that means one thing – it’s time for Watch-It Wednesday our weekly video blog!

If you’ve been through a bankruptcy, can you still get a mortgage? The short answer is yes, with restrictions. Home Loan Expert Jim Woodworth lays out the details in the video below. This post has more information on how different bankruptcy options affect your mortgage eligibility. If you like what you hear and you’re ready, go ahead and apply for a mortgage here.

Video Transcription:

Hi my name is Jim Woodworth, I’m a Mortgage Banker at Quicken Loans and I’m going to talk to you a little bit about applying for a mortgage after a bankruptcy. I get this question a lot and for the most part, after your bankruptcy is discharged you’ve got to prove yourself all over again. It’s imperative that you get some type of new credit established after the fact. Whether it’s a car loan, a bank loan, credit card, student loan – whatever it may be, it’s imperative that you show lenders going forward that you’ve done a good job of managing your credit. After the bankruptcy is discharged, in most cases you’d have to wait at least 2 years before you’d be able to get new financing for a mortgage – whether it’s purchasing or refinancing. In some limited cases we can get you approved after one year (FHA loans and Chapter 13 bankruptcy only). It depends on what kind of credit you have, what kind of payment history you have and how many pieces of credit you have – but generally speaking you’d have to wait at least 2 years. It’s imperative you get some kind of new credit established after the bankruptcy and the most important thing is you get your payments made on time after the bankruptcy. We’d love to talk to you about it specifically & everybody’s situation is a little bit different so we may be able to get one person approved and not the other so give us a call or find us online. You can find us online at www.quickenloans.com – we’d be happy to help.

If you have any questions, leave us a note in the comments.

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This Post Has 96 Comments

  1. I just recently files bankruptcy on 3/22/16, I have not ever had a mortgage or car loan and I was wondering how long it will take after the final closure to be able to start a mortgage??

    1. Hi Kenny:

      Sorry to hear about your financial trouble. The waiting period depends on the type of loan you’re trying to apply for, so the following are general guidelines:

      • Discharged or dismissed two years prior to application if you file Chapter 7 or 11
      • Discharged or dismissed one year prior to application if you file chapter 13

      Hope this helps.

      Thanks,
      Kevin Graham

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