: Most loans for borrowers in an active bankruptcy require manual underwriting , where a human underwriter deeply scrutinizes your financial stability, residual income, and credit recovery. Eligible Loan Types & Waiting Periods
Buying a home while in an active Chapter 13 bankruptcy is entirely possible and often happens sooner than many borrowers expect. Because Chapter 13 involves a court-structured repayment plan rather than a total liquidation, lenders often view these borrowers more favorably than those in Chapter 7. Core Requirements for Mortgage Approval buying a house while in chapter 13
: You must obtain a "Motion to Incur Debt" from the bankruptcy court. This requires showing the court that the new mortgage is in your best interest and will not jeopardize your ability to complete your repayment plan. : Most loans for borrowers in an active