It depends on the event and the loan. For FHA, the standard wait is two years after a Chapter 7 discharge and three years after a foreclosure or short sale. FHA can work during a Chapter 13 after 12 months of on-time plan payments, with court permission. For Fannie Mae conventional loans, the wait is four years after a Chapter 7, two years after a Chapter 13 discharge, seven years after a foreclosure, and four years after a short sale or deed-in-lieu. Shorter waits can apply with documented extenuating circumstances. Some non-QM lenders allow shorter waits, and terms vary by lender.
A bankruptcy or foreclosure does not mean you can never own a home again. It means a waiting period, plus rebuilding your credit. Knowing the exact date your clock started is the first step.
| Event | FHA (standard) | Fannie Mae (standard) | Fannie Mae with extenuating circumstances |
|---|---|---|---|
| Chapter 7 bankruptcy | 2 years from discharge (12 months possible with extenuating circumstances) | 4 years from discharge or dismissal | 2 years |
| Chapter 13 bankruptcy | Possible after 12 months of on-time plan payments, with court permission | 2 years from discharge; 4 years from dismissal | 2 years from discharge or dismissal |
| Foreclosure | 3 years from when title transferred | 7 years from completion | 3 years, with extra limits until 7 years |
| Short sale / deed-in-lieu | Generally 3 years from title transfer (short sale); deed-in-lieu treated like foreclosure | 4 years | 2 years |
| More than one bankruptcy in 7 years | — | 5 years from the latest | 3 years |
Some non-QM lenders will lend sooner after a credit event. They typically ask for a larger down payment and charge a higher rate. Terms vary by lender, so compare the cost with waiting for a standard loan.
Usually two years after the discharge date. FHA may allow 12 months if the bankruptcy came from documented events outside your control.
Fannie Mae requires four years from discharge or dismissal, or two years with documented extenuating circumstances.
FHA may allow it after 12 months of on-time plan payments and written permission from the court.
Three years for FHA. Seven years for Fannie Mae, or three years with documented extenuating circumstances and extra limits.
When the foreclosure was completed and title left your name, not when you stopped paying.
FHA says divorce alone is not. Talk to a lender about your full story.
Had a bankruptcy or foreclosure and want to know your date? Call me at (615) 495-6594, email travis@heathrowmtg.com, or start an application.
Checked October 11, 2026. VA loans have their own rules; ask about them. Lenders may add stricter rules. This is not a loan offer.
