10/25/2026
🏡 Bankruptcy Doesn't Mean Homeownership Is Off the Table!
Filed Chapter 7 or Chapter 13 bankruptcy? You may be closer to buying a home than you think!
Let's talk about something I see all the time.
Someone goes through a bankruptcy, and they assume buying a home is out of the question for the next 7 to 10 years.
Good news! That's not necessarily true! 🎉
I've spent over 25 years in the mortgage industry, and one thing I've learned is that financial setbacks don't have to define your financial future.
Sometimes life gets messy. Divorce happens. Medical bills pile up. Jobs disappear. Financial situations change.
Bankruptcy can be part of getting back on your feet, but it doesn't automatically mean your dreams of homeownership have to disappear.
💳 Chapter 7 Bankruptcy
With FHA financing, you may be eligible for a mortgage as soon as two years after your bankruptcy discharge, assuming you meet the other qualification requirements.
Conventional financing generally requires a four-year waiting period after a Chapter 7 discharge, although certain documented extenuating circumstances may allow exceptions.
🏡 Chapter 13 Bankruptcy
Here's something that surprises a lot of people!
You may be able to qualify for an FHA mortgage while you're still making payments on your Chapter 13 bankruptcy!
Under FHA guidelines, borrowers may be considered after making at least 12 months of satisfactory payments under their repayment plan, provided they meet additional requirements, including any necessary bankruptcy court permission.
That's right. You don't always have to wait until your bankruptcy is discharged!
💜 What About Your Credit Score?
Your credit score matters, but it's only one piece of the puzzle.
I help borrowers understand their credit reports, identify opportunities for improvement, and develop a realistic plan to become mortgage-ready.
Sometimes you're closer than you realize.
Other times, we have a little homework to do. Don't worry, I promise there's no pop quiz! 😂
⭐ Here's What I Want You to Know
A bankruptcy doesn't mean you've failed. It means you've had a financial setback, and there may be a path forward.
Whether your bankruptcy was discharged years ago, recently completed, or you're currently making Chapter 13 payments, let's talk about your options.
Maybe you're ready to buy today.
Maybe you're six months away.
Maybe we need to put a game plan together.
Whatever your situation, I'd rather help you understand what's possible than have you spend years assuming the answer is no.
Your financial past is part of your story. It doesn't have to determine the ending.
🏡 Karol Johnson
Mortgage Loan Officer | New American Funding
25+ Years of Mortgage Experience
NMLS #313916
📱 801-663-0278
Helping homebuyers throughout ALL of Utah!
Mortgage eligibility depends on the loan program, bankruptcy history, credit, income, and other underwriting requirements. Waiting periods and exceptions vary. Loan approval is not guaranteed.
Equal Housing Opportunity. This is not a loan commitment or guarantee of any kind. Terms and conditions apply. Subject to borrower and property qualifications. Not all applicants will qualify. Rates and terms are subject to change without notice. All mortgage loan products are subject to credit and property approval. © 2026 New American Funding, LLC. NMLS #6606. nmlsconsumeraccess.org. 1 MacArthur Place, Suite 800, Santa Ana, CA 92707. newamericanfunding.com. (800) 450-2010.
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