HELOC After Bankruptcy
At least one HELOC we offer accepts a Chapter 7, 11 or 13 bankruptcy four years after discharge or dismissal. Foreclosures and short sales follow stricter rules, and we tell you that up front.
What a HELOC after bankruptcy requires
Each item below is a requirement of at least one HELOC we offer.
- A Chapter 7, 11 or 13 bankruptcy must be four years past its discharge or dismissal date.
- At another program, no bankruptcy can have been filed in the last five years, and an open bankruptcy is declined.
- No 30-day mortgage or rent late in the last six months, and no more than one in the last 12 months.
- Judgments and tax liens must be paid off before or at closing.
- Collections can stay open up to $2,000 if under 24 months old, or $2,500 each if older; medical collections can stay open at any balance.
- The line is mostly or fully drawn at closing: at least 75% at one program and the full line at the other.
A clear four-year rule
All three chapters covered
Medical collections can stay
Honest answers on foreclosure
Scores from 600 on primary homes
Lines from $5,000
How Soon Can You Get A HELOC After Bankruptcy?
At least one HELOC we offer accepts you four years after discharge or dismissal. Another waits five years from the filing date.
The clock depends on the program. At least one HELOC we offer accepts a Chapter 7, 11 or 13 bankruptcy four years after it was discharged or dismissed. Another program declines any bankruptcy filed in the last five years and any filing that has not been discharged or dismissed. Because one counts from discharge or dismissal and the other counts from filing, the same bankruptcy can meet one rule and not the other.
Foreclosure is harder. At least one program says a past foreclosure, deed-in-lieu, pre-foreclosure sale, short sale, short payoff or mortgage charge-off on any mortgage, even one on a different property, will not be approved or considered. The other declines a foreclosure started or completed on a first mortgage in the last five years. If foreclosure is part of your history, see our mortgage after foreclosure page.
Your credit since the bankruptcy matters as much as the date. At least one program requires no 30-day mortgage or rent late in the last six months and no more than one in the last 12 months. It allows scores from 600 on a primary home, with a debt-to-income limit of 45% below 680 and 50% at 680 and up. The other program’s main guidelines start at 640 and decline non-medical collections over $500.
Why choose Saxton for a HELOC after bankruptcy
This page is for homeowners with a past bankruptcy who want to know exactly when a home equity line becomes possible again.
Four Years From Discharge Or Dismissal
At least one HELOC we offer accepts Chapter 7, 11 and 13 bankruptcies once four years have passed from discharge or dismissal.
Two Clocks, Checked For You
One program counts from discharge or dismissal. Another counts five years from the filing date. We check your dates against both.
Collections Have Clear Limits
Collections under 24 months old can stay open up to $2,000, and older ones up to $2,500 each. Medical collections can stay open at any balance.
600 Score On Primary Homes
At least one program starts at a 600 score for a primary home. Below 680, the debt-to-income limit is 45%.
Foreclosure Rules Stated Plainly
At least one program says a past foreclosure, short sale or deed-in-lieu on any mortgage will not be approved or considered. Another waits five years after a first-mortgage foreclosure.
Judgments Paid At Closing
At least one program lets you pay off judgments and tax liens at closing. Debts more than 90 days past due must also be paid by then.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about getting a HELOC after bankruptcy.
Yes, once enough time has passed. At least one HELOC we offer accepts a Chapter 7 four years after discharge or dismissal. Another program waits five years from the filing date.
Not with the HELOCs we offer. At least one program declines any bankruptcy that has not been discharged or dismissed, and the others count from discharge or dismissal: more than 12 months at one program, two years after a Chapter 13 discharge at another, and four years at another.
Yes. At least one program counts more than 12 months from a Chapter 13 dismissal, or more than 48 months for Chapter 7. Another counts four years from dismissal, the same as from discharge. Another program counts five years from the date the bankruptcy was filed.
At least one HELOC we offer will not approve or consider a past foreclosure, deed-in-lieu, short sale, short payoff or mortgage charge-off on any property. Another waits five years after a foreclosure on a first mortgage. Another waits four years after a short sale or deed-in-lieu and seven years after a foreclosure, with shorter waits possible for documented extenuating circumstances. We will tell you before you apply whether your history fits.
At least one program requires no 30-day mortgage or rent late in the last six months and no more than one in the last 12. Another declines a 30-day mortgage late in the last six months.
Not always. At least one program lets collections stay open up to $2,000 when under 24 months old, or $2,500 each when older, and medical collections at any balance. Another declines non-medical collections over $500.
At least one HELOC we offer starts at 600 for a primary home, with a 45% debt-to-income limit below 680. Another program’s main guidelines start at 640.
Find out what you qualify for
Tell us your bankruptcy chapter and its discharge or dismissal date, and we will show you the HELOC options that fit.
Get Pre-Qualified- Consumer Financial Protection Bureau, home equity loan compared with a HELOC
- Consumer Financial Protection Bureau, mortgages
Loan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.