Getting Approved for a Mortgage During Chapter 13 Bankruptcy

Securing a mortgage while in Chapter 13 bankruptcy is possible—but it requires approval from your bankruptcy trustee and, in most cases, the bankruptcy court. The process begins with notifying your trustee of your intent to apply for a mortgage. You’ll typically need to provide a Pre-Qualification Letter from a lender, along with updated financial information to show the new monthly mortgage payment is affordable within your repayment plan.

Once the trustee reviews your request for new debt, they will assess whether it’s reasonable, beneficial, and in compliance with your bankruptcy terms. This review includes confirming that the mortgage application is not fraudulent, and that it aligns with your repayment obligations. If the trustee agrees, your bankruptcy attorney will then file a motion to incur new debt with the court.

The bankruptcy court must approve the motion before you can move forward with the loan. At Janus Mortgage, we work closely with your attorney and trustee to ensure every step of the process is handled efficiently and in compliance with Chapter 13 rules.

Step-by-Step Process: How to Get a Mortgage While in Chapter 13 Bankruptcy

Getting a mortgage during an active Chapter 13 bankruptcy may seem complex—but with the right guidance and lender, it’s entirely possible. At Janus Mortgage, we specialize in navigating this process and work closely with your trustee and bankruptcy attorney to ensure compliance every step of the way.

1. Initial Consultation - We begin with a personalized consultation to understand your unique financial situation, bankruptcy timeline, and homeownership goals. This allows us to determine whether you’re eligible for a Chapter 13 mortgage loan and what loan products best fit your needs.

2. Strategic Mortgage Planning - Next, we analyze how a new mortgage aligns with your bankruptcy repayment plan and long-term financial health. Our goal is to ensure the loan improves—not hinders—your current situation.

3. Preliminary Application Review - We’ll review your mortgage application to confirm that your proposed monthly payment is affordable and beneficial, increasing the likelihood of trustee and court approval.

4. Gathering Trustee-Required Documents - Different trustees request different documents. Based on our experience with Chapter 13 cases across jurisdictions, we’ll provide a customized set of lender and loan documents for your bankruptcy trustee’s review.

5. Mortgage Application Submission - Once trustee approval is granted, you can complete your mortgage application through our secure online portal, over the phone, or in person—whichever works best for you.

6. 3-Bureau Credit Report Analysis - We order a 3-in-1 credit report (Equifax, Experian, and TransUnion) to evaluate your credit standing. This step is especially important in Chapter 13 cases, where outdated or incorrect credit data is common. We’ll guide you in correcting errors that could affect your loan approval.

7. Loan Submission & Underwriting - Your completed loan package is submitted to underwriting. Occasionally, underwriters may request additional documentation related to your bankruptcy. We handle these conditions quickly to keep your process on track.

8. Final Approval & Closing Preparation - After underwriting clears the loan, we prepare final documentation, including escrow instructions, insurance details, and closing disclosures. We coordinate with your closing attorney or escrow agent to set a signing date.

9. Closing & Post-Closing Support - Once your loan closes, you’ve officially completed one of the most challenging steps in post-bankruptcy recovery. All documents will be reviewed, signed, and notarized. But our support doesn’t end there.

10. Ongoing Client Support - We stay in touch after closing through annual mortgage reviews, quarterly newsletters, and personalized updates about market trends, refinance opportunities, and credit improvement strategies.