Does an old bankruptcy matter more than a recent one?

Honestly, I’ve noticed the same thing. When we started looking, I figured as long as the bankruptcy was off my credit report and I’d kept everything clean since, it wouldn’t matter much. Turns out, some lenders still wanted to dig into it, like they were looking for a reason to say no. Others barely blinked. It’s wild how much it depends on the bank or even the person you get.

I wonder if it’s more about their internal risk policies than anything else. Like, maybe some places just have a checkbox - “bankruptcy ever? Nope” - while others actually look at your whole story. Makes me think about how much is just luck of the draw.

Did you notice if certain types of lenders (like credit unions vs big banks) were stricter? We had way better luck with local credit unions being flexible, but maybe that’s just our area...

It’s definitely not just your area - credit unions do tend to be more flexible, at least in my experience. They’re usually more focused on the overall picture, not just a single red flag from years ago. Big banks often have those hard-and-fast rules you mentioned, where any bankruptcy, no matter how old, can be a dealbreaker. It really does come down to internal policies and sometimes even the underwriter’s mood that day. I’ve seen files get approved by one lender and flat-out denied by another, with almost identical criteria. It’s frustrating, but not all lenders weigh past issues the same way.

Honestly, I’ve run into the same thing - one lender says “no way” because of a bankruptcy from ages ago, while another barely bats an eye. It’s wild how much it depends on who’s looking at your file that day. Hang in there, though. Persistence really does pay off, especially if you’re willing to shop around a bit. It’s frustrating, but you’re definitely not alone.

It’s wild how much it depends on who’s looking at your file that day.

That’s been my experience too. The thing is, lenders have different overlays on top of the standard guidelines. Some stick strictly to the waiting periods after bankruptcy (like 2 years for FHA, 4 for conventional), while others are more flexible if you’ve rebuilt your credit and have solid income.

From what I’ve seen, an old bankruptcy - say, 7+ years ago - usually matters a lot less, especially if your credit since then is clean. But some underwriters still get hung up on it, even if it’s technically off your report. It’s not always logical. I’ve had files where one lender flat-out refused, and another approved with almost no questions.

If you’re running into brick walls, it’s worth checking with a mortgage broker who can shop your file around. They know which lenders are more forgiving about older issues. Persistence really does make a difference in this game.

Honestly, I’ve seen the opposite a couple times - some lenders actually get more nervous about older bankruptcies if there’s been zero new credit built up since. Like, if someone just “hid out” for years after filing and didn’t touch a credit card, it raises more eyebrows than a recent bankruptcy with active rebuilding. It’s weird, but they want to see you’ve learned from it, not just waited it out. Credit is such a weird game sometimes…