Written and reviewed by Jack Gladden, Senior Loan Officer, NMLS #1470164
Updated · 6-minute read · How these guides are written
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Buying again after a credit event, in brief
- The short answer
- You can buy again. Traditional loans make you wait, typically 2 to 7 years; specialist lenders can lend much sooner.
- FHA and VA
- Usually 2 years after a Chapter 7 discharge, and possible during a Chapter 13 plan after 12 months of on-time payments.
- Conventional
- 4 years after Chapter 7 and 7 years after foreclosure, shorter with documented extenuating circumstances.
- Specialist lenders
- Many lend from about a year after the event, with a larger down payment and a higher rate.
- The clock
- Starts from the discharge, dismissal or completion date, not the filing date.
- The plan
- Rebuild credit while you wait, then refinance into a lower rate once you qualify.
How long you’ll wait for a traditional loan.
| Event | FHA | VA | Conventional |
|---|---|---|---|
| Chapter 7 bankruptcy | 2 years after discharge | 2 years after discharge | 4 years after discharge or dismissal; 2 with extenuating circumstances |
| Chapter 13 bankruptcy | Possible after 12 months of on-time plan payments, with trustee approval | Possible after 12 months of on-time plan payments, with trustee approval | 2 years after discharge; 4 years after dismissal |
| Foreclosure | 3 years | 2 years | 7 years; 3 with extenuating circumstances |
| Short sale or deed-in-lieu | 3 years | Generally 2 years | 4 years; 2 with extenuating circumstances |
- Extenuating circumstances
- A one-time event beyond your control, such as a serious illness, a job loss or the death of a wage earner, documented, can shorten some conventional waits.
- More than one bankruptcy
- Conventional loans need 5 years after the most recent one if you’ve filed more than once in seven years.
- After a foreclosure
- With extenuating circumstances, a conventional loan 3 to 7 years after a foreclosure is limited to buying a primary home with at least 10% down, or a limited cash-out refinance.
USDA loans generally treat a foreclosure in the past 3 years as a serious credit issue. Individual lenders can add their own rules on top of these.
What you can still owe after a foreclosure.
If a foreclosure sale brings in less than you owed, the gap is a deficiency. Whether the lender can collect it depends on your state and how the foreclosure was done:
- California
- No deficiency after a trustee’s sale, the out-of-court process most California foreclosures use, and none on a purchase loan for a one- to four-unit home you lived in.
- Arizona
- No deficiency after a trustee’s sale of a one- or two-family home on 2.5 acres or less. After other trustee’s sales, the lender has 90 days to sue for it.
- Florida
- Courts can award a deficiency. On an owner-occupied home it is limited to the debt minus the home’s fair market value, and a separate suit for it must be filed within a year of the sale.
- Ohio
- Lenders can get a deficiency judgment, but on a one- or two-family home you lived in it becomes unenforceable two years after the court confirms the sale.
Federal rules also stop a servicer from starting a foreclosure until you are more than 120 days behind, which leaves time to apply for help. This is general information, not legal advice; a real estate attorney can tell you where you stand.
Buying sooner with a specialist lender.
If you don’t want to wait out the full period, non-QM lenders set their own rules. Many will lend from about 12 months after a discharge or foreclosure, usually with a larger down payment; their best terms usually take 2 to 4 years.
| Specialist (non-QM) loan | Traditional loan | |
|---|---|---|
| Wait after the event | From about 12 months at many specialist lenders, usually with more down; 2 to 4 years for their best terms | 2 to 7 years |
| Down payment | Usually larger, often 10–30% | From 3–3.5% |
| Rate | Higher | Lower |
| Later | Refinance once you meet traditional waits | — |
Know your dates?
Send me the type of event and its discharge or completion date. I’ll tell you when each loan type opens up for you, and what you could do now.
Rebuild while you wait.
Check your reports
Make sure the event shows the right status and dates, and dispute errors with the credit bureaus.
Re-establish credit
A secured card or small installment loan, paid on time, with low balances.
Keep everything on time
New late payments after the event matter more than the event itself.
Save and document
Build your down payment and reserves, and keep the paperwork for your discharge or completion.
Your path back to a lower rate.
Many of my clients buy with a specialist loan when the timing matters, then refinance into an FHA, VA or conventional loan once their waiting period passes and their credit has recovered. Planned from the start, that path often costs less than renting through the wait. See refinancing.
How we get started.
Tell me what happened
The type of event, its dates, and your credit since.
I map your options
When each loan type opens up, and what a specialist lender would need now.
Choose the path
Buy now and refinance later, or wait for a traditional loan.
Apply and close
With the event explained up front, so underwriting has no surprises.
Mortgages after bankruptcy and foreclosure, answered plainly.
How long after Chapter 7 can I get a mortgage?
FHA and VA usually 2 years after discharge, conventional 4 years (2 with extenuating circumstances). Specialist lenders can be much sooner.
Can I buy a house while I’m in Chapter 13?
With FHA or VA, possibly, after 12 months of on-time plan payments and with your trustee’s approval.
How many years after foreclosure can I buy a house?
VA about 2 years, FHA 3, conventional 7 (or 3 with extenuating circumstances). Specialist lenders can be sooner.
How hard is it to get a mortgage after a foreclosure?
Hard with a traditional loan until the wait passes; much easier with a specialist lender and a larger down payment.
Do I still owe money after a foreclosure?
It depends on your state and how the foreclosure was done. California and Arizona bar it after most home foreclosures; Florida and Ohio allow it with limits. See what you can still owe.
Can a mortgage company come after you after a foreclosure?
Only where state law allows a deficiency judgment, and within its time limits: rarely for homes in California and Arizona, more often in Florida and Ohio. A second mortgage can have different rules, so ask an attorney.
Will my rate be higher?
With a specialist loan, yes. Once you qualify for a traditional loan again, refinancing can bring it down. See also: Today’s average mortgage rates.
Which lenders accept borrowers after bankruptcy?
FHA, VA and conventional lenders once the waiting period has passed, and non-QM lenders sooner. I compare both.
How long does a bankruptcy stay on my credit report?
A Chapter 7 can stay up to 10 years and a Chapter 13 usually 7, but lenders go by the waiting periods, and on-time payments rebuild your score well before it drops off.
What is the 120-day rule for foreclosure?
A federal servicing rule: your servicer can’t start a foreclosure until you are more than 120 days behind on payments, which gives you time to apply for a modification or other help.
Will Chapter 7 bankruptcy affect my mortgage?
If you keep the home and keep paying, the mortgage usually continues; many borrowers reaffirm the loan or simply keep paying. For a new mortgage, the waiting periods start from the discharge date.
How long is credit affected after Chapter 7?
The bankruptcy can stay on your report for up to 10 years, but scores often recover within a couple of years of on-time payments, and lenders go by their waiting periods rather than the report.
How hard is it to buy a house after filing Chapter 13?
Often possible sooner than people expect: FHA and VA can lend after 12 months of on-time plan payments with the trustee’s approval, and conventional loans 2 years after discharge.
Can I still get an FHA loan after Chapter 7 bankruptcy?
Yes, usually 2 years after the discharge, and sometimes after 1 year with documented extenuating circumstances, as long as your credit has been rebuilt since. See also: FHA loans.
Is it possible to get an 800 credit score after Chapter 7?
Yes, though it takes time. A Chapter 7 can stay on your credit report for up to 10 years, but its effect fades as it ages. Years of on-time payments, low card balances and a mix of accounts can rebuild a score into the high 700s or above, often before the bankruptcy drops off.
Can I reaffirm my mortgage after a Chapter 7 discharge?
Generally no: a reaffirmation agreement has to be signed before the discharge. You can still keep the home by continuing to pay, but you no longer owe the debt personally, and some servicers stop reporting those payments. Ask your bankruptcy attorney. For a new mortgage later, lenders can usually verify the payments from your bank records.
FHA
VA
DSCR & investor
Refinance