Quick Answer: Yes, you can get a mortgage after bankruptcy in Utah. The waiting periods are: FHA loans require 2 years after a Chapter 7 discharge or 1 year into a Chapter 13 repayment plan with court approval. Conventional loans require 4 years after Chapter 7 or 2 years after Chapter 13 discharge. VA loans require 2 years after Chapter 7 or 1 year into Chapter 13. After the waiting period, you need to re-establish credit, and many buyers achieve 620-660 scores within 2-3 years post-bankruptcy.
Waiting Periods by Loan Type
| Loan Type | Chapter 7 Waiting Period | Chapter 13 Waiting Period |
|---|---|---|
| FHA | 2 years from discharge | 1 year into repayment (with court approval) |
| VA | 2 years from discharge | 1 year into repayment |
| USDA | 3 years from discharge | 1 year into repayment (with court approval) |
| Conventional | 4 years from discharge | 2 years from discharge / 4 years from dismissal |
Steps to Rebuild After Bankruptcy
- Get a secured credit card immediately after discharge — use it for small purchases and pay in full monthly
- Consider a credit-builder loan from a credit union (Self, etc.)
- Keep all accounts current — no late payments on anything
- Keep credit card utilization below 30% (below 10% is ideal)
- Don't apply for too much credit at once — each inquiry has a temporary negative impact
- Save for a down payment — 3.5% FHA minimum, but Utah DPA programs can help
Extenuating Circumstances Exception
If your bankruptcy was caused by events beyond your control — job loss, medical emergency, death of a wage earner, divorce — you may qualify for shortened waiting periods. FHA allows 1-year waiting with documented extenuating circumstances. You'll need written documentation (layoff letter, medical bills, etc.) and evidence that the financial situation has been resolved.
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