It is possible to get approved for a mortgage and buy a house during and after debt settlement. The process of debt settlement will often negatively impact a credit score, so it can be the case that credit score repair becomes the first order of business before applying for a mortgage, since qualifying for a home loan from the Federal Housing Administration requires a FICO score of 580 or higher, for example. However, if credit score, payment history and debt-to-income ratio are in an acceptable range, many mortgage lenders will lend to those individuals showing a history of debt settlement.