Those questions became the foundation for 7 Steps to a 720 Credit Score, a book I wrote after studying tens of thousands of credit reports. The book was originally designed for my mortgage clients, people who wanted to buy a house but were being penalized for poor credit.
Over time, that book turned into a full-blown credit education program that’s now helped more than 200,000 people.
During these past three decades, I’ve talked to thousands of students during monthly Q&A calls. I’ve listened to their questions, analyzed their credit profile, and seen their results.
So let’s take a look at the answers to questions like: Can you buy a house after bankruptcy?
FAQ: Can You Buy a House After Bankruptcy?
The answer is a definitive and resounding yes!
And I’ve seen it happen over and over again.
I’ve seen people who felt hopeless at first go on to qualify for mortgages, rebuild their savings, and finally stop living paycheck to paycheck. If you’re here because you’re wondering if you can buy a house after bankruptcy, you’re in the right place.
When I wrote 7 Steps to a 720 Credit Score, I was trying to solve a problem my clients kept bringing up: Can you buy a house after bankruptcy? They didn’t want to wait ten years. They wanted a real path to homeownership in one or two years. That question became the foundation for everything I created. The book has since become an online course, and it’s helped more than 200,000 people rebuild their credit and take control of their future. If you’re ready to start your journey, don’t miss your chance to enroll in the credit rebuilding course for free.
Let’s take a look at some of the frequently asked questions related to buying a home after a bankruptcy…
FAQ: How long do I have to wait to buy a house after bankruptcy?
It depends on the type of bankruptcy and the type of loan.
For a Chapter 7 bankruptcy, FHA and VA loans generally require a two-year waiting period from your discharge date. Conventional loans typically require a four-year wait, unless you qualify for an exception due to extenuating circumstances like job loss or medical hardship.
Chapter 13 timelines can be much shorter. If you’ve made 12 on-time payments under your repayment plan and have court approval, you can qualify for an FHA or VA loan while still in bankruptcy. You read that right? You can qualify just one year after filing.
This surprises a lot of people, but we’ve had clients successfully go this route and close on homes during an active Chapter 13.
Keep in mind: these timelines only tell part of the story. Lenders look at your full financial picture, which include your income, debt-to-income ratio, and credit behavior since filing. If you’ve shown stability and rebuilt your credit, you’re in a solid position.
One of my clients called me on Christmas Eve, exactly two years and two days after his Chapter 7 discharge, to let me know he had just closed on a new home. His mortgage payment? Lower than what he’d been paying in rent. That’s what’s possible when you follow the right steps.
Press Play: Can You Buy a House After Bankruptcy?
FAQ: Will a bankruptcy permanently ruin my chances of getting a mortgage?
No. Bankruptcy won’t block you from homeownership. If anything, it might help you get there sooner.
The truth is, ignoring debt causes lasting damage. If you are struggling to make your payments on time, paying high interest rates, and maxing out your credit cards, guess what? Your credit score is probably already low. You’ll struggle to save, and your debt-to-income ratio may keep you from qualifying for any kind of loan, let alone a mortgage.
Bankruptcy resets the clock.
It clears away many of those unpayable debts and gives you a chance to start fresh. Most of our clients who file are in a stronger position within two years than they ever could have been just trying to tough it out. They’re saving money, rebuilding credit, and, in many cases, finally ready to buy a home.
And they’re not alone. Nearly one in five FHA loans go to borrowers with a past bankruptcy or foreclosure. That’s because lenders, especially FHA and VA lenders, look at more than just your credit report. They also weigh your recent payment history, income stability, and explanations for past hardship.
The higher your credit score, the better your interest rates. If you’d like to join our free credit education course and improve your credit score so that you can buy a home after bankruptcy, enroll now to take advantage of this limited offer.
FAQ: What credit score do I need to qualify for a mortgage after bankruptcy?
FHA and VA loans allow scores as low as 580, but you’ll open more doors with a 620 or higher. That’s the point where you start qualifying for better rates, looser debt-to-income requirements, and even down payment assistance programs.
Conventional loans generally require a 640–680 score, and are more credit-sensitive. That means interest rates and terms will vary more sharply based on your score.
In our program, 7 Steps to a 720 Credit Score, we’ve seen clients go from a post-bankruptcy low to a 620 in just a few months. One highly motivated client hit 720 in only nine months. The key is having a plan and sticking with it.
If your score is hovering in the fair credit range, you’re already in lending territory. You don’t need a perfect score to move forward—you just need to show lenders you’ve turned things around.
Press Play: How Can I Buy a Home After Bankruptcy?
FAQ: How do I rebuild my credit so I can qualify for a home loan?
The best way to rebuild credit is through strategic, consistent action. Here’s what we teach in 7 Steps to a 720 Credit Score:
- Open three new credit cards after your bankruptcy has been confirmed (Chapter 13) or discharged (Chapter 7)
- Keep your credit card balances below 30 percent, and pay them in full
- Add one installment account (we recommend a credit rebuilder program)
- Dispute inaccurate items on your credit report (we’ll help you review it for free as part of the Credit Rebuilder Program)
- Never miss a payment
Even with a fair credit score, you can qualify for an FHA or VA loan. But if you want better rates and more options, especially with conventional lenders, rebuilding your credit gives you leverage.
Be sure to read this article: “Why Can It Be Beneficial to Increase Your Credit Score Before Buying a House?”
FAQ: Can I still get a good interest rate after bankruptcy?
Yes, and you can even qualify for down payment assistance if your credit score hits 620.
Interest rates are based more on your current credit score, income, and financial profile than your past bankruptcy. While a 580 score might get you in the door with FHA or VA, you’ll qualify for better terms and possibly lower monthly payments with a 680 or above.
To increase your chances of locking in a better rate:
- Rebuild your credit to at least 620, but higher is better
- Keep your debt-to-income ratio as low as possible
- Document steady income and employment
- Consider saving a larger down payment (even 5% instead of 3.5% can help)
One of our clients recently closed with just $500 cash to close because they hit the 620 threshold and qualified for down payment assistance. That kind of result is more common than people realize, and completely within reach after bankruptcy.
Be sure to read this complementary article: “How Much of a Home Loan Can I Get with a 650 Credit Score?”
