The waiting period depends on the bankruptcy type and loan program. Chapter 7: FHA requires two years from discharge, VA requires two years, conventional requires four years, and Non-QM may have no waiting period. Chapter 13: FHA allows applications after one year of on-time plan payments with court approval, VA requires one year, and conventional requires two years after discharge or four years after dismissal. These are minimums and having rebuilt credit during the waiting period significantly improves approval odds.

For FHA loans after the waiting period, the minimum score is 580 for 3.5 percent down or 500 for 10 percent down. Conventional loans typically require 620 or higher. Non-QM loans vary by lender but generally require 580 to 620 with larger down payments. The good news is that bankruptcy's impact on your score diminishes over time, and active credit rebuilding can get you into qualifying range faster than you expect.

Your rate depends more on your current credit score and down payment than on the bankruptcy itself, especially once you have passed the waiting period. A borrower with a 640 score two years after Chapter 7 will receive similar FHA rates to any other borrower with a 640 score. If you buy sooner through a Non-QM program, rates will be higher, but you can refinance into a conventional or FHA loan once you meet the standard waiting period and credit requirements.

Bankruptcy remains on your credit report for seven years for Chapter 13 and ten years for Chapter 7, but you do not need to wait that long to buy. Most borrowers successfully purchase homes two to four years after discharge. Waiting for the full reporting period means missing out on years of home equity growth and paying rent instead of building wealth. The key is meeting the program waiting period and rebuilding your credit score.