Mortgage After Bankruptcy Calculator

Know exactly when you can buy a home after Chapter 7 or Chapter 13 bankruptcy. See waiting periods for every loan program, track your credit recovery, and estimate your rate with bankruptcy history.

Mortgage After Bankruptcy Calculator

Find out exactly when you can get a mortgage after bankruptcy. See waiting periods for each loan program, your earliest eligible date, and estimated rate with bankruptcy history.

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Currently Eligible For
FHA, VA
Apply with these programs now
Earliest Eligible Date
Now
FHA available
Estimated Rate (Now)
9.3%
+2.5% above market (BK premium: +1.5%, score: +1.0%)
Monthly Payment
$2,221
$270,000 loan at 9.3%

Waiting period status for each loan program after your Chapter 7 discharge.

FHAEligible Now
Wait: 2 years | Ch.13: 1 year with trustee approval + on-time payments
VAEligible Now
Wait: 2 years | For veterans only; ch.13: 12 months of on-time payments
ConventionalMay 2028 (24 mo)
Wait: 4 years | With extenuating circumstances: 2 yr Ch.7, 2 yr Ch.13
USDAMay 2027 (12 mo)
Wait: 3 years | Rural properties only; ch.13: 12 months trustee payments

The bankruptcy rate premium typically declines over time as lenders see more post-BK payment history.

At Earliest Eligibility
Maximum premium — fresh BK history
9.8% rate
$2,320/mo
1 Year After Eligibility
Improving — some post-BK payment history
9.3% rate
$2,221/mo
2 Years After Eligibility
Good — 2+ years clean history
8.8% rate
$2,124/mo
3 Years After Eligibility
Moderate — BK receding in history
8.3% rate
$2,028/mo
5+ Years After Eligibility
Near-normal — old BK, clean record
8.0% rate
$1,981/mo
7 Years (Ch.7 falls off)
Normal rate — BK removed from report
7.8% rate
$1,934/mo

How to Use This Mortgage After Bankruptcy Calculator

Select your bankruptcy chapter, enter your discharge date, and provide your current credit score and income. The calculator shows your waiting period status for each loan program, your earliest eligible date, and an estimated rate based on both your bankruptcy history and current credit score.

Chapter 7 vs Chapter 13

Chapter 7 (liquidation) eliminates most debts in 3–6 months. Waiting periods are longer: 4 years for conventional, 2 years for FHA and VA. Chapter 13 (reorganization) involves a 3–5 year repayment plan and has shorter waiting periods because you demonstrated ability to manage debt — 12 months of plan payments can open FHA and VA.

Discharge Date Input

For Chapter 7, use the discharge date (typically 60–90 days after filing). For Chapter 13, use either your earliest plan start date (for FHA/VA during-plan eligibility) or the actual discharge date. Most waiting periods are measured from discharge, not filing.

Rate Estimation

The estimated rate adds two premiums above the best market rate: a bankruptcy recency premium (highest right after discharge, declining to near-zero after 5+ years) and a credit score tier premium. Together these determine your realistic borrowing cost.

Waiting Period Reference Table

FHA Loan: Chapter 7 = 2 years from discharge | Chapter 13 = 1 year in plan + trustee approval
VA Loan: Chapter 7 = 2 years from discharge | Chapter 13 = 1 year in plan + trustee approval
USDA Loan: Chapter 7 = 3 years from discharge | Chapter 13 = 1 year in plan
Conventional: Chapter 7 = 4 years from discharge | Chapter 13 = 2 years from discharge

Extenuating Circumstances (documented job loss, medical):
Conventional Ch.7 reduces from 4 to 2 years
FHA Ch.7 reduces from 2 to 1 year with HUD housing counseling

Rate Premium = BK Recency Premium (0–2%) + Credit Score Tier Premium (0–1.75%)

Example: Chapter 7 discharged 26 months ago, credit score 650. Eligible for FHA (2 year wait passed) and VA but not yet conventional (need 4 years). Rate: base 6.75% + 1.5% BK premium + 1.0% score premium = 9.25%. At 36 months past discharge with a 690 score: 8.25%. At 48 months with 720 score: 7.5%.

Example: Jennifer's Recovery Timeline

Jennifer: Chapter 7 Discharged 18 Months Ago

Bankruptcy TypeChapter 7
Discharge Date18 months ago
Current Credit Score628 (was 530 at discharge)
FHA EligibleIn 6 months (24-month wait)
VA Eligible (veteran)In 6 months (24-month wait)
Conventional EligibleIn 30 months (48-month wait)
Target Home Price$280,000
Rate at FHA Eligibility~9.0% (6.75% + 2% BK + 0.25% score)
Rate at Conventional (4 yrs)~7.5% (6.75% + 0.5% BK + 0.25% score)
Monthly Payment Difference$285/month less at conventional eligibility

Jennifer's strategy: In the next 6 months, she is rebuilding credit (secured cards, credit builder loan), saving for a larger down payment, and will apply for FHA immediately at month 24. She expects her score to be 660 by then — still FHA territory with a reduced rate premium. She plans to refinance into a conventional loan at year 4 when the full BK premium clears from her rate.

Frequently Asked Questions

After Chapter 7 discharge: FHA and VA require 2 years. USDA requires 3 years. Conventional loans require 4 years (or 2 years with documented extenuating circumstances). The waiting period starts from the discharge date, not the filing date. Discharge typically occurs 60–90 days after filing, so total time from filing is slightly longer.
Yes — FHA and VA programs allow this after 12 months of on-time Chapter 13 plan payments. You need written permission from your bankruptcy trustee, and the court must approve you taking on new debt. The mortgage payment must fit within your plan budget. Conventional and USDA require waiting until after your Chapter 13 is fully discharged (typically 3–5 years into the plan).
FHA requires a minimum 580 FICO for 3.5% down after the waiting period (500–579 with 10% down). VA technically has no minimum, but most lenders require 580+ after bankruptcy. Conventional lenders typically want 620–640+ after bankruptcy, though some require higher scores. Your credit score also heavily determines your rate — rebuilding to 680+ before applying significantly reduces your costs.
Extenuating circumstances are events beyond your control that caused the bankruptcy — job loss, serious medical illness, death of a spouse, or divorce. With proper documentation, conventional lenders can reduce the Chapter 7 waiting period from 4 to 2 years, and FHA can reduce from 2 to 1 year. You must show the event caused the bankruptcy AND demonstrate full financial recovery since then.
It depends on your local market and how quickly you're improving your score. If home prices are rising 5%+ annually, waiting 2 more years for a 0.5–1% rate improvement may cost more in purchase price than you save in rate. However, if you can improve your score from 640 to 720+ in 18 months, the rate savings could be substantial. Use the "Buy Now vs Wait" section to run your specific numbers.

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