How do I help a buyer with a bankruptcy get a mortgage in Wisconsin?
Rob Miller explains the waiting periods and strategies for helping Wisconsin buyers with past bankruptcies qualify for a home loan sooner than they think.
Rob Miller, Branch Manager at MadCity Home Loans, shares what Realtors and buyers need to know about qualifying after a bankruptcy.
How do I help a buyer with a bankruptcy get a mortgage in Wisconsin?
A bankruptcy does not permanently disqualify someone from buying a home. The key is knowing the mandatory waiting periods by loan type — and then aggressively rebuilding credit during that window.
Waiting Periods by Loan Type
Chapter 7 Bankruptcy (Liquidation)
- FHA: 2 years from discharge date
- VA: 2 years from discharge date
- Conventional: 4 years from discharge date
- USDA: 3 years from discharge date
Chapter 13 Bankruptcy (Reorganization)
- FHA & VA: 1 year into the repayment plan with on-time payments and court approval
- Conventional: 2 years from discharge, or 4 years from dismissal
What Buyers Should Do During the Waiting Period
- Open 2–3 secured credit cards and pay them in full every month
- Never carry a balance above 30% of the card limit
- Avoid new collections or late payments at all costs
- Build 3–6 months of cash reserves
For Realtors: Set the Timeline
When you meet a buyer who mentions a past bankruptcy, send them to me right away — even if they're not ready yet. I'll tell them exactly where they stand, how long until they qualify, and what to do between now and then. Many become clients 12–24 months later. Getting in front of them early builds real loyalty.
Related Guide: Learn how we rebuild credit for mortgage readiness in our Credit Repair Guide.