Best Mortgage Lenders for Chapter 13 Bankruptcy

Rebuilding your financial life after filing Chapter 13 bankruptcy can feel like climbing a steep mountain—but rest assured, homeownership is still within reach. In fact, many mortgage lenders work with Chapter 13 bankruptcy filers, helping them secure home financing either during repayment or after discharge. With the right guidance and lender, getting a mortgage post-bankruptcy is not just possible—it’s achievable.

The RefiGuide wrote this comprehensive guide to publish the top 10 mortgage lenders that offer home loans to borrowers with bankruptcies, their loan programs, eligibility criteria, and two real-life case study of a successful mortgage approval during Chapter 13.

Can You Get a Mortgage After Chapter 13 Bankruptcy?

Yes, you can get a mortgage after (and sometimes during) Chapter 13 bankruptcy.

Chapter 13 involves a court-approved repayment plan that allows debtors to pay off part or all of their debts over 3 to 5 years.

Many lenders are willing to work with applicants in active repayment after 12 months of on-time payments, as long as they receive court approval to take on new debt.

Key Requirements Include:

• 12+ months of timely Chapter 13 plan payments
• Trustee and court approval (if still in repayment)
• Re-established credit history (preferably 620+)
• Steady employment and income
• Acceptable debt-to-income (DTI) ratio

Best Mortgage Lenders That Work with Chapter 13 Bankruptcy in 2025

1. Carrington Mortgage Services

Carrington is known for working with credit-challenged borrowers. Their Flexible Advantage Program includes options for borrowers currently in Chapter 13 or recently discharged.

• FHA, VA, and non-QM loans available
• Minimum FICO: 500 (depending on loan type)
• Will refinance during active repayment

2. Freedom Mortgage

Freedom Mortgage offers government-backed loans, including FHA and VA, with flexible underwriting for bankruptcy situations.

• FHA loans available 12 months into repayment
• Accepts court-approved borrowers during active Chapter 13
• Specializes in refinancing for lower rates

3. Angel Oak Home Loans

Angel Oak is a leader in non-QM lending and offers solutions for recent bankruptcies, self-employed, and alternative income borrowers.

• Bank statement, asset depletion, and no income loans
• Chapter 13 borrowers eligible after 12 months of repayment
• Minimum FICO: 600

4. Newrez

Newrez combines traditional mortgage offerings with flexible underwriting to support unique borrower profiles.

• Offers FHA and VA loans
• Manual underwriting available
• Will consider bankruptcy applicants with trustee approval

5. Guild Mortgage

Guild Mortgage is one of the more borrower-friendly lenders, offering specialized programs for first-time buyers and those recovering from financial hardship.

• FHA, VA, and USDA options
• Will work with borrowers in active Chapter 13
• Known for hands-on customer service

6. Caliber Home Loans

Caliber offers a wide range of mortgage products, including non-QM loans for recently discharged or active Chapter 13 filers.

• One day out of bankruptcy considered (case-by-case)
• Flexible DTI and manual underwriting available
• Great for self-employed borrowers

7. Northstar Funding

Northstar specializes in custom mortgage solutions for borrowers with bankruptcies and low credit scores.

• Chapter 13 loans with court approval
• FHA, conventional, and non-QM options
• Known for personalized support

8. HomeBridge Financial Services

HomeBridge helps borrowers with unique situations, including those in bankruptcy, foreclosure, or credit repair.

• Offers FHA loans with flexible requirements
• Bankruptcy seasoning considered from 12 months
• Case-by-case underwriting

9. Citadel Servicing (Acra Lending)

Citadel, now known as Acra Lending, provides true no doc and non-QM mortgages for borrowers who can’t qualify through traditional means.

• No waiting period post-discharge
• Asset and income-based loan approvals
• Good for investors and gig workers

10. Rocket Mortgage (AKA Quicken Loans)

Rocket Mortgage brings automation and accessibility to mortgage applications, even for those with recent credit events.

• FHA and VA loans available after discharge
• Streamlined application and approval process
• Requires solid re-established credit

What Types of Mortgage Loans Are Available After Chapter 13 Bankruptcy?

FHA Loans

• Eligible 12 months into repayment
• 3.5% down payment
• Credit score minimums as low as 580

VA Loans

• No down payment required
• Eligible 12 months into plan with court approval
• Must meet service eligibility

Non-QM Loans

• Designed for borrowers with recent credit events
• No strict waiting period post-bankruptcy
• Bank statement and asset-based programs

What if your bankruptcy wasn’t the end of your homeownership dream—but the beginning of a more financially informed journey? With the right lender and guidance, Chapter 13 doesn’t have to delay your goals. It can pave the way to a smarter, stronger future.

Tips for Getting Approved for a Mortgage with a Chapter 13 Bankruptcy

1. Make on-time plan payments consistently
2. Get trustee approval before applying
3. Improve your credit score with responsible use
4. Save for a down payment if required
5. Work with a specialist lender or broker familiar with bankruptcy loans

• Mortgage lenders that work with Chapter 13
• FHA loan during Chapter 13 bankruptcy
• Best mortgage companies after bankruptcy
• Non-QM home loans for bankruptcy
• Home refinance Chapter 13

Bankruptcy doesn’t define your financial future—it reshapes it. Whether you’re in the midst of a Chapter 13 repayment plan or recently discharged, you have options. The lenders listed above specialize in helping borrowers like you get approved for home loans, despite past setbacks.

With the right preparation, lender support, and guidance from a bankruptcy-friendly mortgage broker, you can take a big step toward rebuilding—not just your credit, but your life.

Your new beginning is just a mortgage approval away.

Find Mortgage Companies That Will Refinance While in Chapter 13 Bankruptcy

The RefiGuide understands the challenges of home refinancing while in chapter 13 bankruptcy, but we can match you with lenders and mortgage companies that specialize in this lending niche.

Refinancing your mortgage while in Chapter 13 bankruptcy may seem difficult, but it’s more possible than many borrowers realize.

In fact, certain mortgage companies specialize in working with individuals in active bankruptcy, provided they meet specific criteria such as timely plan payments, trustee approval, and a demonstrated ability to manage new debt. Whether you’re seeking to lower your monthly mortgage payment, take advantage of better interest rates, or transition out of a high-risk loan, refinancing during Chapter 13 can be a strategic financial move.

While not every lender is willing to work with borrowers in active bankruptcy, several reputable companies do. Below are the top five mortgage companies that offer refinance options while in Chapter 13 bankruptcy.

Case Study 1: Refinancing During Chapter 13

Profile: Tom, a 42-year-old homeowner in Arizona, filed for Chapter 13 after a medical emergency caused financial strain. Two years into his repayment plan, Tom’s adjustable-rate mortgage was set to increase, threatening his ability to maintain payments.

Challenge: With only 24 months of bankruptcy behind him and no discharge yet, Tom feared lenders would decline him outright.

Solution: Tom contacted Carrington Mortgage Services, who reviewed his payment history, verified he had made 24 consecutive on-time plan payments, and helped him secure trustee approval. Carrington offered a fixed-rate FHA refinance loan that locked in a lower interest rate and reduced his monthly payment by $275.

Outcome: With a court-approved refinance in place, Tom stayed current on his bankruptcy plan and maintained ownership of his home under better terms.

Case Study 2: Chapter 13 Mortgage Refinance Success

Profile: Lisa, a 38-year-old nurse in Ohio, filed Chapter 13 after unexpected medical bills and a divorce left her financially overextended. She was two years into her five-year repayment plan and had been making on-time payments.

Challenge: Lisa’s mortgage rate was 7.5%—well above the current market rate. She wanted to refinance to reduce monthly expenses but worried her active Chapter 13 status would disqualify her.

Solution: Lisa contacted Carrington Mortgage Services. With 24 months of verified on-time payments and court approval in hand, Carrington approved her for a FHA streamline refinance. The new loan brought her FHA loan rate down to 5.75% and reduced her monthly payment by $290.

Outcome: Lisa stayed in her repayment plan, continued building credit, and saved thousands in interest. The refinance helped her achieve financial stability while still under bankruptcy protection.

Takeaway: “I thought no one would help me during bankruptcy, but Carrington made it happen. I’m finally getting ahead.”

Final Thoughts on Best Mortgage Lenders for Chapter 13 BK

If you’re in Chapter 13 bankruptcy and struggling with your mortgage, refinancing could provide critical relief. The key is working with lenders that understand the complexities of bankruptcy and offer flexible solutions. Companies like Carrington, Freedom Mortgage, and Angel Oak specialize in helping borrowers during challenging times.

Before applying, gather documentation of your payment history, get trustee approval, and consult with a bankruptcy attorney or mortgage broker who specializes in these scenarios. With the right support, you can take advantage of refinance opportunities—even during Chapter 13—and build a stronger financial future.

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