How Long After Bankruptcy Can I Buy a House?

Waiting Periods by Loan Type

The minimum wait after a Chapter 7 discharge is two years for FHA and VA loans and four years for conventional loans under Fannie Mae and Freddie Mac rules. During a Chapter 13 plan, FHA, VA and USDA loans can be possible after 12 months of on-time payments with court or trustee approval.

The FHA row comes from HUD's FHA handbook. HUD updates that handbook, so confirm the current rule with an FHA lender before you plan around a date.

Every figure in the table is an agency minimum, and lenders may add stricter requirements of their own. The Freddie Mac row shows its recovery periods for manually underwritten loans, and its rule for automated approvals is not published in our sources.

Two or more bankruptcy filings in the past seven years mean a longer wait. Fannie Mae requires five years from the most recent discharge or dismissal, or three with documented extenuating circumstances. Freddie Mac requires 60 months from the most recent discharge or dismissal.

When the Waiting Period Starts After Bankruptcy

For every loan in the table, the time after a bankruptcy is counted from the discharge or dismissal date, which can fall months after the day you filed. A Chapter 7 discharge is generally entered 60 to 90 days after the date first set for the meeting of creditors, and that meeting is held 21 to 40 days after the petition, according to U.S. Courts.

FHA, VA and USDA count to different end dates. HUD's FHA handbook measures two years to the date the FHA case number is assigned, so the application and closing dates do not count. VA measures to the closing date, and USDA looks back 36 months from the application date.

Say a Chapter 7 discharge is dated March 1, 2025. An FHA case number could be assigned on or after March 1, 2027, and a VA loan could close after that date. A Fannie Mae or Freddie Mac loan would wait until March 1, 2029, or until March 1, 2027 with documented extenuating circumstances.

The split between discharge and dismissal matters most after a Chapter 13. A filer who completes all plan payments is entitled to a discharge, subject to conditions, and Fannie Mae and Freddie Mac then wait two years. If the plan is dismissed before completion, both wait four years from the dismissal date, or two years with documented extenuating circumstances.

A foreclosure tied to the bankruptcy can move the start date. VA dates re-established credit from the later of the discharge date or the date title to the home transferred. Freddie Mac lets the Chapter 7 period run from the discharge date when the mortgage was extinguished in the Chapter 7, foreclosure did not begin before the filing, and the mortgage was not reaffirmed.

Buying a House During a Chapter 13 Plan

Under FHA, VA and USDA rules, a home loan can be possible during a Chapter 13 plan once 12 months of on-time plan payments are made and the new debt is approved. U.S. Courts says plans last three years for filers below their state's median income unless the court approves longer, and generally five years for filers above it. For how the two chapters differ, see Chapter 7 vs Chapter 13 Bankruptcy.

Each program names who must sign off:

• FHA: HUD's handbook asks for 12 months of satisfactory, on-time payments and written permission from the bankruptcy court. Its text does not mention the trustee.
• VA: the trustee or the bankruptcy judge must approve the new credit after at least 12 months of satisfactory payments.
• USDA: 12 consecutive on-time payments, with approval from the trustee or the bankruptcy judge.

U.S. Courts says a Chapter 13 debtor may not take on new debt without consulting the trustee, and each district sets its own procedure. In the Western District of Washington, a debtor can send a written request straight to the Chapter 13 trustee to take on post-confirmation debt, and trustee approval means no separate court order is needed.

HUD's FHA handbook wording asks for written permission from the bankruptcy court and does not mention the trustee. The same district rule lets a debtor file the request with the court by motion instead, so ask the FHA lender which approval it needs before you send anything.

Courts, trustees and local rules vary, so a bankruptcy attorney, a legal-aid office or a nonprofit credit counselor can apply these rules to your own case.

Extenuating Circumstances That Shorten the Wait

Extenuating circumstances are one-time events outside your control that caused the financial trouble, and documenting them can cut a conventional wait after Chapter 7 from four years to two. Fannie Mae's definition is "nonrecurring events that are beyond the borrower's control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations." Freddie Mac describes a nonrecurring or isolated circumstance beyond the borrower's control that reduced income or increased expenses and left the borrower unable to repay as agreed.

Fannie Mae wants the case made in writing. The lender must get a written explanation, such as a letter or email, showing the borrower had no reasonable option other than to default. VA lists unemployment, prolonged strikes and medical bills not covered by insurance, but says divorce is not generally viewed as beyond the borrower's control. Fannie Mae names a divorce decree as an example of supporting paperwork.

Freddie Mac says overcoming derogatory credit from financial mismanagement takes a longer and more convincing reestablishment period than overcoming extenuating circumstances. Even with extenuating circumstances, Freddie Mac will not accept serious adverse credit within the most recent two years.

For FHA, HUD's handbook allows a Chapter 7 discharged 12 to 24 months earlier when extenuating circumstances caused it and the borrower has since shown a documented ability to manage money responsibly. USDA lets lenders weigh whether the problems were temporary, whether they were beyond the applicant's control, and whether the loan "would significantly reduce the applicant's housing expenses."

What Underwriters Check After a Bankruptcy

Beyond the waiting period, underwriters look for re-established credit. Fannie Mae treats credit as re-established only when all four of its conditions are met:

• The waiting period and its related requirements are met.
• The loan gets a recommendation from Fannie Mae's automated underwriting system that is acceptable for delivery.
• The borrower has a traditional credit history.
• The file does not rely on nontraditional credit or a thin file.

The other agencies use different tests. HUD's FHA handbook asks that, over the most recent two years, the borrower has either reestablished good credit or chosen not to take on new credit. The lender must also document that the events behind the bankruptcy are not likely to recur.

VA says a lack of credit since a bankruptcy is not generally an adverse factor, and VA has no minimum credit score requirement. Minimum scores for FHA, USDA and conventional loans are not in the agency sections cited here, and lenders may set their own.

Expect a paper trail. FHA lenders pull the bankruptcy and discharge documents when the credit report does not verify the discharge date. For a bankruptcy in the last seven years, Freddie Mac wants copies of the petition, schedule of debts and discharge or dismissal, plus evidence that debts the bankruptcy did not satisfy are paid or being paid.

Check your credit reports before a lender does. The Federal Trade Commission (FTC) says AnnualCreditReport.com is the only site authorized to fill orders for free reports, and the three bureaus let you check each one weekly for free. Accounts discharged in the bankruptcy should show a zero balance, which is item 12 on the Consumer Financial Protection Bureau (CFPB) credit report review checklist.

If a discharged account still shows a balance, dispute it with the bureau. The FTC says the bureau has 30 days to investigate, and the investigation is free.

The bankruptcy itself keeps weighing on scores while it sits on the report. myFICO says someone with a score in the mid 700s might see a drop of 100 points or more, and the impact lessens over time. The CFPB says a bankruptcy can stay on a credit report up to 10 years. Experian dates removal from the month of filing, so the report clock and the mortgage clock start on different dates.

For the reporting timeline by chapter, read How Long Bankruptcy Stays on Your Credit Report. For the payment habits behind re-established credit, read How to Rebuild Credit After Bankruptcy.

Choosing a Mortgage After Bankruptcy

Start with the loan whose waiting period you already meet. After a Chapter 7, FHA and VA open at two years and conventional loans at four, while USDA reviews a discharge from the last 36 months more closely on manually underwritten loans.

• Pick VA if you can use a VA loan and want a program with no minimum credit score, where a lack of new credit since the bankruptcy is not generally held against you. FHA Loan vs VA Loan compares the two.
• Pick FHA if two years have passed and you have either rebuilt credit or stayed away from new debt. FHA also spells out a 12-to-24-month path for documented extenuating circumstances, and FHA vs Conventional Loan sets it against a conventional mortgage.
• Pick a conventional loan if four years have passed since a Chapter 7, or two since a Chapter 13 discharge, and you have a traditional credit history. Fannie Mae does not accept a thin file as re-established credit.
• Look at USDA if you can use a USDA loan and are ready for a manual review of a recent discharge. USDA Loan vs FHA Loan compares the two programs.

A Chapter 7 discharged less than 12 months ago falls short of the FHA, VA and conventional rules. HUD's FHA handbook sets 12 months as the floor even with extenuating circumstances. VA says approval within 12 months will generally not be possible. Fannie Mae and Freddie Mac allow no less than two years. Use that year to build a record of on-time payments.

Two events would change this order. A HUD handbook update could move the FHA terms. A Chapter 13 that ends in dismissal pushes conventional loans out to four years from the dismissal date, or two with documented extenuating circumstances.

Getting Ready to Buy a House After Bankruptcy

Get preapproved early, because the CFPB says preapproval can be a good way to spot credit problems in time to correct them. A preapproval letter states how much a lender is willing to lend under certain assumptions, and the CFPB notes it is not a guaranteed loan offer. If a lender reviews your credit and says you do not qualify, it must give you an adverse action notice.

After you apply, the lender must send a Loan Estimate within three business days, and every lender uses the same standard form. The CFPB's Loan Estimate explainer recommends requesting several from different lenders so you can compare them.

The CFPB's Buying a house hub splits the process into four stages:

1. Prepare to shop
2. Explore loan choices
3. Choosing a loan offer
4. Get ready to close

If you are near the two-year mark for an FHA loan, ask the lender when it would request the case number, since HUD's handbook counts the two years to that date.

Budget the payment before you shop. Run prices, rates and down payments through the mortgage calculator to see the monthly payment, then test it against your monthly spending in the budget calculator. The First-Time Home Buyer Guide covers the rest of the purchase.

Find the discharge or dismissal date on your bankruptcy paperwork, then count forward with the waiting-period table to see how long after bankruptcy you can buy a house with each loan.

Frequently asked questions