Can I get an investment property loan after a bankruptcy?
Yes, you can get an investment property loan after a bankruptcy, typically 2 to 4 years after discharge for DSCR and conventional loans depending on the chapter, though hard money and some bridge lenders will lend sooner, often 1 year or less, at lower leverage and a higher rate. The specific chapter (7 versus 13), whether it was tied to real estate losses, and your credit and payment history since discharge all affect the timeline.
Typical seasoning by loan type and chapter
| Loan type | Chapter 7 (liquidation) | Chapter 13 (repayment plan) |
|---|---|---|
| DSCR loan | 2 to 4 years after discharge | 2 years after discharge, or 1 year with satisfactory plan payments in some cases |
| Conventional investment loan | 4 years after discharge | 2 years after discharge or dismissal |
| Bank commercial loan | 4+ years, case by case | 2 to 4 years |
| Hard money | Often no minimum, or as little as 1 year | Similar |
| Bridge loan | 1 to 2 years typical | Similar |
Ranges vary significantly by lender.
Why hard money is available sooner
Hard money lenders underwrite primarily the property's equity and the exit plan, with lighter credit review. A bankruptcy, even a recent one, matters less to a lender whose main protection is the property itself at conservative leverage.
What lenders look at beyond the discharge date
Reestablished credit. Positive payment history on new accounts since the bankruptcy.
What caused it. A bankruptcy tied to a failed real estate venture or a business failure often gets more scrutiny than one tied to medical debt or a divorce.
Current financial stability. Steady income or cash flow, adequate reserves, and no new derogatory marks since discharge.
Rebuilding to qualify faster
- Open and responsibly use 2 to 3 secured or unsecured credit lines to rebuild history.
- Keep all payments current without exception since discharge.
- Build liquidity and reserves beyond the minimum.
- Use hard money or bridge financing for the first 1 to 2 years, then refinance into DSCR once seasoning is met.
- Write a brief explanation of what happened and what has changed, which some lenders want as part of the file.
A worked example
Borrower discharged a Chapter 7 bankruptcy 18 months ago, tied to a medical debt situation unrelated to real estate, with clean payment history since. Most DSCR lenders would still decline at 18 months given their typical 2 to 4 year window, but a hard money or bridge lender at 65 to 70 percent leverage would likely approve, with a plan to refinance into DSCR once the 2 to 4 year window is reached.
How CommFi handles it
Our lending desk reads the bankruptcy details, the discharge date, and your history since, and tells you honestly which loan types are available now versus which require more time. It funds direct when it fits, and when the desk searches a database of 7,000+ lenders, it finds the ones whose seasoning rules your specific timeline meets. Zero upfront fees.
Related reading
Related questions
- How long after bankruptcy can I get an investment property loan?
- Typically 2 to 4 years for DSCR and conventional loans, though hard money and bridge lenders will often lend sooner, sometimes within 1 year.
- Does the type of bankruptcy affect the waiting period?
- Yes, Chapter 13 with satisfactory plan payments sometimes qualifies faster than Chapter 7, and the specific lender's rules vary.
- Can I get hard money financing right after a bankruptcy discharge?
- Often, yes, since hard money lenders underwrite primarily the property's equity rather than your credit history.
- Does the cause of the bankruptcy matter to lenders?
- Often, yes. A bankruptcy tied to a failed real estate venture typically gets more scrutiny than one tied to medical debt or divorce.
- How can I qualify for a loan sooner after bankruptcy?
- Rebuild credit with clean payment history on new accounts, build reserves, and use hard money or bridge financing in the interim while seasoning accrues toward a DSCR refinance.
Property developer and licensed appraiser. 22+ years in real estate: TIC conversions, multi-unit redevelopments, mixed-use, fix and flips, commercial DSCR.