Many individuals who file for bankruptcy wonder if they will ever be able to qualify for a mortgage. Although bankruptcy does result in a significant credit score impact, purchasing a home is often possible within a few years after filing. 

Learn more about the rules for buying a home after bankruptcy. 

Conventional mortgage loan 

Standard mortgage loans without support from a government agency such as the Federal Housing Authority fall into the category of conventional home loans. These loans often have the lowest interest rates but the highest qualification requirements. Although rules vary from lender to lender, most applicants for this type of loan must be at least four years out from a bankruptcy filing. The longer you wait, the more likely it is that you will qualify at a favorable interest rate. Fannie Mae lenders may allow you to qualify after just two years if you can prove that extenuating circumstances such as illness or job loss contributed to the bankruptcy. 

FHA loans 

This type of mortgage comes from a standard bank or lender but has backing from the FHA to protect against borrower default. FHA rules require borrowers to wait at least one year to qualify for a mortgage after filing for Chapter 13 bankruptcy, as long as you pay the bankruptcy trustee as scheduled for the entire year. Those who filed a Chapter 7 bankruptcy must wait at least two years to qualify for an FHA loan. The credit score and income requirements are lower for an FHA mortgage than for a conventional mortgage, so it can be easier to qualify even if bankruptcy lowered your FICO score. 

USDA loans 

This type of loan is available only in certain rural areas and does not require a down payment or minimum credit score. You must wait at least three years after filing for bankruptcy to qualify for a USDA loan. 

Filing for bankruptcy can help you rebuild your financial life. If you are struggling with bills, you may be able to see the light at the end of the tunnel with this strategy.