What You Need To Know To Get A Home Loan after BANKRUPTCY in St. Louis, Kansas City,
Springfield, Columbia, and Missouri!


‚ÄčFiling for bankruptcy is a very difficult decision, I remember when I filed for a Chapter 7 bankruptcy I felt like I let myself down as well as the obligations I had to my creditors. But, looking back I know now that I did the right thing for my family and my future. I learned from my experience and have never looked back. I bring a unique combination as a mortgage loan officer of firsthand experience and knowledge to help my clients when it comes to getting approved for a mortgage after a bankruptcy.

This page is provided to help you with getting back on track and being able to own a new home. There is no problem in the mortgage world that cannot be solve if given enough time and cooperation, this rule applies especially with being approved for a new mortgage after a Chapter 7 or Chapter 13 bankruptcy.

If you would like my help in getting you approved for a new home, refinance your current mortgage or if you would simply like to ask me questions please use the form at the bottom of this page. I can answer your questions because I know.


FHA Guidelines: You may apply for a FHA insured loan after your bankruptcy has been discharged for TWO (2) years with a Chapter 7 Bankruptcy.  You may apply for a FHA insured loan after your bankruptcy has been discharged for ONE (1) year with a Chapter 13 Bankruptcy. BUT; if you are still in the re-payment period of your Chapter 13 bankruptcy and you have 12 months or more of on time payments and the permission of the Trustee you can qualify for a FHA mortgage NOW! THIS IS BIG!

FHA TIP: Application Date must be after the above waiting period to be eligible for FHA financing after hardship. But, I can pull a credit report before that time to conduct a pre-application qualification.

VA Guidelines: Chapter 7 - You may apply for a VA guaranteed mortgage TWO (2) years after a chapter 7 Bankruptcy. CHAPTER 13 - If you have finished making all payments satisfactorily, the lender may conclude that you have reestablished satisfactory credit immediately after discharge. If you have satisfactorily made at least 12 months of payments and the Trustee or the Bankruptcy Judge approves of the new credit, if is possible to be approved for a home loan.

VA TIP: Application Date must be after the above waiting period to be eligible for FHA financing after hardship.
But, I can pull a credit report before that time to conduct a pre-application qualification.

USDA Rural Development Guidelines: You may apply for a USDA rural loan THREE (3) years after the discharge of a Chapter 7 or 13 Bankruptcy.

Date of Credit Approval must be after the above waiting period to be eligible for USDA financing after hardship.



      CONVENTIONAL Guidelines: I will be referring to the Fannie Mae guidelines but for the most part Freddie Mac guidelines are so similar that it difficult to separate the two.


     You may apply for a Conventional, Fannie Mae loan after your Chapter 7 bankruptcy has been discharged for FOUR (4) years, TWO (2) years from the discharge of a Chapter 13

The waiting period for Fannie Mae can be reduced by two full years if the bankruptcy was due to the result of a circumstance beyond the control of the borrowers applying for the mortgage. These circumstances are generally strictly held to job loss beyond the control of the borrower, extended lay-offs, disability, medical reasons, or death of a wage earner.
Extenuating circumstances are typically one-time catastrophic events lenders and underwriters will require documentation of the extenuating circumstances.

CONVENTIONAL TIP: Date of Credit Report must be after the above waiting period to be eligible for Conventional financing after hardship.

NON QM MORTGAGES: I moved to New American Funding because of their expansive non-conventional or non QM programs. These programs are designed to help home buyers and home owners through mortgage programs that are for those that don't fit into the 'normal' mortgage programs but are of good to high quality borrowers.

Many of these programs will provide a much shorter waiting period after a bankruptcy, one program we have only has a 1 DAY after a bankruptcy discharge to qualify. There are many programs available to you, too numerous and highly specialized to mention in depth. It is my bias that allows me to say..... more than likely we can help you!

What Do Underwriters Look For On Borrowers With Prior Bankruptcy?

The first thing mortgage loan underwriters will look at when reviewing mortgage loan borrowers with a prior bankruptcy is to confirm that the bankruptcy was discharged which means that the bankruptcy is totally complete and fully discharged. An Underwriter will also look to see that you have met the mandatory waiting period after bankruptcy.  The filing date of a bankruptcy is different than the discharge date of a bankruptcy.  It normally takes 30 to 90 days or more to have a  bankruptcy discharged from the original filing date of the bankruptcy. You will eventually receive a Discharge Letter, this document is highly important.

Another important factor that Underwriters look for is late payments after the discharge. Most mortgage underwriters do not like late payments after a bankruptcy.  It does not matter how old a bankruptcy discharge is, though the older the more likely for underwriting tolerance.  One or two late payments after a bankruptcy may not be a deal killer with a solid letter of explanation, there are mortgage lenders that will deny a mortgage applicant if they have had any late payments after bankruptcy.  If you have a mortgage lender that is telling you that you do not qualify due to late payments after bankruptcy, please contact me.  

Re-established credit is extremely important.  Many people who filed bankruptcy and had their bankruptcy discharged have a hard time getting new credit and often times do not even try to get new credit and just purchase their goods with cash. I understand the reason behind this but this practice is not good when it comes to qualifying for a mortgage after bankruptcy.  I recommend as soon after your bankruptcy has been discharged you should get two to three secured credit cards with at least a $300 credit limit.  Secure credit cards are a great a tool, unsecured are better,  to use in re-establishing credit. Use your credit cards wisely though, I always suggest that you use them and pay them off each month.

COMPENSATING FACTORS: Underwriters will want as much additional strength as possible to offset your bankruptcy. Please read my page on compensating factors and see what more you can bring to your mortgage situation to help get you approved.

The Credit Score Rescue Program is a program to help increase credit scores quickly, not to repair credit reports or credit history but to  make tweaks to increase scores to the next level or a bit higher. The Credit Score Rescue Program is best utilize for near miss situations, you have low scores but not very poor to bad credit scores and you need to qualify for a mortgage program or down payment assistance.

Another use of the Credit Score Rescue Program; you have low or decent credit score or even good credit scores and you want to move yourself into a higher risk adjustment bucket or two to get better mortgage scenarios. You are looking for longer term benefits to improved credit scores than just getting approved for the mortgage available at the time.

Lack of credit history is another reason to utilize the Credit Score Rescue Program, newer credit histories, very light credit history,  or a weak credit usage, are all fixable and can be remedied in a very short time with the Credit Score Rescue Program.

The Credit Score Rescue Program will not help with the credit scores that come from mismanagement of credit, really low scores, sub-560 credit scores are more than likely needing credit restoration and repair professional programs


Here are a few tips to speed up the road to credit recovery and the mortgage services you desire. First, continue timely paying on items such as your home and cars that were not discharged in the bankruptcy. Having at least a couple credit items you are paying on- time will help. Second, limit the amount of other debts such as credit cards or bank loans. Too much debt will make it more difficult to qualify for a loan, particularly revolving credit accounts such as credit cards.

Your debt-to-income ratio is one part of the puzzle lenders will look at in determining your ability to repay a mortgage. Another important aspect is providing all necessary documents in a timely manner to your loan consultant. Items such as paystubs and tax returns are generally needed in order to establish your income and show the ability exists to repay the loan.


Information on your credit report needs to be checked for accuracy. Items that you feel are inaccurate need to be disputed in writing with the three major credit repositories. (Equifax, Experian and Trans Union). This may take persistence to ensure the items are removed appropriately. The removal of this inaccurate information will help establish a more favorable debt-to-income ratio and make the process of qualifying for a loan easier. Finally, if you are unable to qualify for a loan initially, do not despair. Sometimes this process requires a little patience. Follow the tips mentioned earlier and more options are usually available 6 months to a year after the bankruptcy discharge.

All derogatory credit items will remain on your credit report for a period of 7 years from the date of last activity.  However, a bankruptcy will remain on your credit report for a period of 10 years from the discharge date of your bankruptcy. 


Get Pre-Qualified now, it is Quick and Easy, just a few minutes of your time and you will have the answer in no time! I will personally conduct your pre-qualification, I will look at the information you provided and make determinations that will soon have you shopping for a new home!








Bob Rutledge Mortgage

Loan Officer NMLS#: 297044

New American Funding 12321 Olive Blvd, ste 150
St. Louis, MO 63141