You may be able to buy a house after bankruptcy once you meet the applicable mortgage program's requirements. How long you have to wait depends primarily on whether you filed Chapter 7 or Chapter 13 and which type of mortgage you use.
After Chapter 7, FHA and VA financing commonly use a two-year benchmark. Fannie Mae generally requires four years after discharge or dismissal, while Freddie Mac uses a 48-month recovery period for manually underwritten mortgages after Chapter 7 or Chapter 11. USDA handles Chapter 7 differently and may allow some borrowers to qualify before three years have passed.
Chapter 13 can provide options sooner because FHA, VA and USDA may allow financing while the repayment plan is still active when applicable payment-history, underwriting and permission requirements are met.
Mortgage After Bankruptcy Basics
| Loan Type |
After Chapter 7 |
After Chapter 13 |
| FHA loan |
Generally two years after discharge under manual underwriting. Consideration after at least 12 months may be possible with qualifying extenuating circumstances and responsible financial management. |
An active plan may be acceptable after at least 12 months of satisfactory payments and written bankruptcy court permission. |
| VA loan |
VA generally considers two years after discharge satisfactory. Consideration after one year may be possible when credit has been reestablished and the bankruptcy resulted from circumstances beyond your control. |
May receive favorable consideration after at least 12 months of payments as agreed and approval from the trustee or bankruptcy judge. |
| USDA loan |
A Chapter 7 discharge more than 36 months before submission is not considered adverse credit. Earlier approval may be possible depending on GUS findings or a documented credit exception. |
An active plan may be acceptable with the required payment history and court or trustee permission when applicable. Manual underwriting generally requires at least 12 months of the repayment plan to have elapsed. |
| Fannie Mae conventional |
Generally four years after discharge or dismissal, or two years with documented qualifying extenuating circumstances. |
Generally two years after discharge or four years after dismissal. A two-year period after dismissal may apply with documented extenuating circumstances. |
| Freddie Mac conventional |
For manually underwritten mortgages, generally 48 months after discharge or dismissal. Different treatment can apply when Loan Product Advisor returns an Accept risk class. |
For manually underwritten mortgages, generally 24 months after discharge or 48 months after dismissal. Loan Product Advisor can separately assess whether the borrower's credit reputation is acceptable. |
These are mortgage-program guidelines, not guarantees of approval. Automated underwriting results, lender requirements and the rest of your financial profile can affect the actual timeline.
How Long Do You Have to Wait to Buy a House After Chapter 7 or Chapter 13?
Waiting Periods After Chapter 7 Discharge
Chapter 7 commonly creates a waiting period that starts with the bankruptcy discharge date.
FHA and VA guidelines generally use a two-year benchmark. FHA manual underwriting may allow consideration after at least 12 months when qualifying extenuating circumstances caused the bankruptcy and the borrower has demonstrated responsible financial management.
Conventional agency rules generally require a longer recovery period. Fannie Mae generally requires four years after a Chapter 7 discharge or dismissal, with a two-year period available when qualifying extenuating circumstances are documented.
For manually underwritten Freddie Mac mortgages, the standard recovery period following a Chapter 7 or Chapter 11 bankruptcy is 48 months from the discharge or dismissal date. Freddie Mac treats mortgages receiving a Loan Product Advisor Accept risk class differently because its automated underwriting system assesses whether the borrower's credit reputation and applicable recovery period are acceptable.
USDA does not use a simple universal three-year prohibition. A Chapter 7 discharge more than 36 months before the loan is submitted to USDA is not considered adverse credit. A more recent discharge can still be acceptable depending on the Guaranteed Underwriting System, or GUS, recommendation or an approved credit exception.
Buying a House During or After Chapter 13
Chapter 13 works differently because the borrower makes payments under a court-supervised repayment plan rather than immediately receiving a Chapter 7 discharge.
FHA may allow financing while the plan remains active once at least 12 months of the repayment period have elapsed, the required payments have been made on time and the borrower has written permission from the bankruptcy court.
VA may give favorable consideration after at least 12 months of satisfactory Chapter 13 payments when the trustee or bankruptcy judge approves the new credit.
USDA can also allow an active Chapter 13 plan. Requirements depend partly on whether the file receives an acceptable GUS recommendation or requires manual underwriting.
For conventional financing, Fannie Mae generally requires two years after a Chapter 13 discharge or four years after dismissal. Freddie Mac's manually underwritten mortgages use the same 24-month post-discharge and 48-month post-dismissal recovery periods.
Why Chapter 7 and Chapter 13 Have Different Mortgage Rules
Chapter 7 bankruptcy generally involves liquidation of eligible nonexempt assets and discharge of qualifying debts. Mortgage waiting periods commonly measure from the discharge or dismissal date.
Chapter 13 bankruptcy uses a court-approved repayment plan. Because borrowers establish a payment history while completing that plan, some mortgage programs may allow financing before the bankruptcy is discharged.
FHA Loan After Bankruptcy: Chapter 7 and Chapter 13 Waiting Periods
FHA Loans After Chapter 7
Under HUD Handbook 4000.1, a manually underwritten FHA borrower generally must be at least two years past a Chapter 7 bankruptcy discharge.
During that period, the borrower must have reestablished good credit or chosen not to incur new credit obligations.
A period of at least 12 months but less than two years may be acceptable when the bankruptcy resulted from qualifying extenuating circumstances beyond the borrower's control and the borrower has since demonstrated responsible financial management.
FHA Loans During Chapter 13
An active Chapter 13 plan can be acceptable for FHA financing when at least 12 months of the repayment period have elapsed.
The lender must determine that all required payments during that period were made on time. The borrower must also receive written permission from the bankruptcy court to enter into the mortgage transaction.
Bankruptcy rules are only one part of the program. FHA borrowers must also meet the broader FHA loan qualification requirements.
VA Loan Waiting Periods After Bankruptcy
VA Loans After Chapter 7
The VA Lender's Handbook generally considers a borrower who is at least two years beyond a Chapter 7 discharge to have satisfied the bankruptcy concern when credit has otherwise been satisfactorily reestablished.
Consideration may be possible after at least one year when the borrower has reestablished satisfactory credit and the bankruptcy resulted from documented circumstances beyond the borrower's control.
The bankruptcy waiting period does not replace VA's broader credit review. Borrowers with other credit challenges can also review how lenders evaluate a VA loan with bad credit.
VA Loans During Chapter 13
A borrower who has made at least 12 months of Chapter 13 payments as agreed may receive favorable consideration when the trustee or bankruptcy judge approves the new credit.
If the repayment plan has been successfully completed, VA guidance allows the lender to consider satisfactory credit reestablished. The complete mortgage application still must qualify under VA and lender requirements.
USDA Loan Rules After Bankruptcy
USDA Loans After Chapter 7
The USDA Single Family Housing Guaranteed Loan Program handbook does not impose an absolute three-year ban after every Chapter 7 bankruptcy.
A Chapter 7 discharge more than 36 months before submission to USDA is not considered adverse credit. A more recent discharge may still receive an Accept recommendation through GUS.
For manually underwritten, Refer or Refer with Caution files, a Chapter 7 discharge within the previous 36 months generally requires the lender to document an acceptable credit exception.
USDA Loans During or After Chapter 13
An active Chapter 13 plan may be acceptable when required payments have been made on time and the borrower has permission from the bankruptcy court or trustee when that permission is issued.
For manually underwritten and certain referred files, USDA generally requires documentation showing that at least 12 months of the repayment plan have elapsed.
A completed or discharged plan that ended at least 12 months before submission generally does not require a credit exception for those files. A plan completed less than 12 months earlier may require one.
Conventional Loan Waiting Periods After Bankruptcy
Conventional agency guidance is not one single rulebook. Fannie Mae and Freddie Mac publish separate requirements, and the underwriting method can affect how a bankruptcy is evaluated.
Fannie Mae Loans After Chapter 7
Under the Fannie Mae Selling Guide, a Chapter 7 or Chapter 11 bankruptcy generally requires a four-year waiting period from the discharge or dismissal date.
The period can be reduced to two years when the borrower documents qualifying extenuating circumstances.
Fannie Mae Loans After Chapter 13
Fannie Mae generally requires:
- Two years after a Chapter 13 discharge
- Four years after a Chapter 13 dismissal
The dismissal period can be reduced to two years with documented extenuating circumstances. Fannie Mae does not provide a shorter extenuating-circumstances period following a Chapter 13 discharge.
Freddie Mac Loans After Chapter 7
Under the Freddie Mac Single-Family Seller/Servicer Guide, manually underwritten mortgages generally require a 48-month recovery period after the discharge or dismissal of a Chapter 7 or Chapter 11 bankruptcy.
Freddie Mac also distinguishes manually underwritten mortgages from loans evaluated through Loan Product Advisor. When a mortgage receives an Accept risk class from Loan Product Advisor, the automated system has assessed the borrower's credit reputation and whether the applicable period for reestablishment of credit is acceptable.
Freddie Mac Loans After Chapter 13
For manually underwritten Freddie Mac mortgages, the recovery period following Chapter 12 or Chapter 13 bankruptcy is generally:
- 24 months after discharge
- 48 months after dismissal
As with Chapter 7, a Freddie Mac loan evaluated through Loan Product Advisor can be treated differently when the system returns an Accept risk class.
Which Date Starts the Mortgage Waiting Period?
The correct date depends on the bankruptcy chapter, mortgage program and whether another derogatory credit event was involved.
- Chapter 7: The discharge or dismissal date commonly starts the mortgage recovery period.
- Chapter 13: Eligibility may depend on time spent in an active repayment plan, the discharge date or the dismissal date.
- Foreclosure: A separate foreclosure timeline can apply when a property was also foreclosed.
For example, assume a borrower received a Chapter 7 discharge on Jan. 15, 2025. Under a standard two-year FHA manual-underwriting timeline, two years would elapse on Jan. 15, 2027. Under the standard four-year Fannie Mae timeline or Freddie Mac's 48-month manually underwritten recovery period, four years would elapse on Jan. 15, 2029.
The example only illustrates how elapsed time is counted. Actual eligibility depends on the mortgage program, underwriting method and complete application.
What Counts as an Extenuating Circumstance?
Extenuating-circumstance rules depend on the mortgage program.
Fannie Mae defines extenuating circumstances as nonrecurring events 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 also provides separate recovery-period rules for manually underwritten mortgages when significant derogatory credit resulted from qualifying extenuating circumstances. Its documentation and underwriting requirements should be evaluated under the Freddie Mac Guide rather than applying Fannie Mae's definition automatically.
FHA and VA likewise have their own standards for evaluating circumstances that may justify earlier consideration after bankruptcy.
The lender generally needs documentation establishing what happened, when it happened and how it affected the borrower's finances. A written explanation by itself does not automatically qualify for an exception.
What if the Bankruptcy Included a Foreclosure?
A bankruptcy and foreclosure can create separate mortgage recovery periods.
Fannie Mae may apply the bankruptcy waiting period when the lender documents that the mortgage debt was discharged through bankruptcy. Otherwise, the applicable foreclosure requirements can affect eligibility.
Freddie Mac also has specific rules for a foreclosure involving mortgage debt extinguished through Chapter 7 bankruptcy. For manually underwritten loans, Freddie Mac can measure the applicable recovery period from the bankruptcy discharge when its conditions are met, including documentation that the mortgage was extinguished in bankruptcy, foreclosure proceedings did not begin before the bankruptcy filing and the mortgage was not reaffirmed.
The legal foreclosure completion date can differ from the date you stopped making payments or surrendered the property. If both events appear in your history, review the separate rules for getting a mortgage after foreclosure.
How to Prepare to Buy a House After Bankruptcy
1. Confirm Your Bankruptcy Dates
Obtain your bankruptcy filing, discharge or dismissal documents and confirm the exact dates. The applicable mortgage guideline may measure eligibility from one of those dates.
2. Review Any Foreclosure History
Determine whether a mortgage debt was discharged in bankruptcy and whether the property later went through foreclosure. Keep documentation showing the legal completion date when applicable.
3. Review Your Credit Reports
Check that debts discharged in bankruptcy are being reported accurately. You can obtain your reports through AnnualCreditReport.com.
4. Reestablish an Acceptable Payment History
Pay current obligations on time and monitor your credit reports for inaccurate information. Mortgage programs evaluate more than how much time has passed since bankruptcy.
Requirements differ among programs, so compare credit score requirements by loan type rather than assuming one credit standard applies to every mortgage.
5. Build Savings
Plan for the down payment, closing costs and any reserves required for your transaction. The amount varies by loan program, occupancy and financial profile.
6. Review Your Income and Debts
Lenders must determine that your current income can support the proposed mortgage and other obligations. Compare DTI limits by loan type when estimating how your monthly debts could affect qualification.
7. Seek Preapproval When You Meet the Program Requirements
A mortgage preapproval can show which loan programs and amounts may be available based on your current financial profile.
Bankruptcy history is only one part of how mortgage underwriting works. The lender also reviews your income, debts, assets, credit and property information before final approval.
Comparing Loan Options After Bankruptcy
| Loan Type |
Chapter 7 |
Chapter 13 |
Key Qualification Note |
| FHA |
Generally two years after discharge under manual underwriting |
May be possible during an active plan after applicable 12-month payment and court-permission requirements are met |
The complete FHA and lender requirements still apply |
| VA |
Two years is generally considered satisfactory, with possible earlier consideration in qualifying circumstances |
May receive favorable consideration after 12 months of satisfactory plan payments with required approval |
Available only to VA-eligible borrowers |
| USDA |
A discharge more than 36 months old is not adverse credit. More recent events depend on GUS or credit-exception treatment. |
Active plans can be acceptable under applicable GUS or manual-underwriting requirements |
Household income, property-location and other USDA requirements apply |
| Fannie Mae conventional |
Generally four years, or two with qualifying extenuating circumstances |
Generally two years after discharge or four years after dismissal |
Fannie Mae's Selling Guide governs eligible Fannie Mae loans |
| Freddie Mac conventional |
Manual underwriting generally uses 48 months after discharge or dismissal |
Manual underwriting generally uses 24 months after discharge or 48 months after dismissal |
Loan Product Advisor Accept mortgages can receive different automated treatment |
| Non-QM |
Varies by lender and product |
Varies by lender and product |
Non-QM loans do not use one universal bankruptcy recovery standard |
What if You Have Filed Bankruptcy More Than Once?
Multiple bankruptcy filings can result in a longer recovery period.
Fannie Mae generally requires five years from the most recent discharge or dismissal when a borrower has more than one bankruptcy filing during the previous seven years. That period can be reduced to three years when qualifying extenuating circumstances are documented and the most recent filing resulted from those circumstances.
For manually underwritten Freddie Mac mortgages, multiple bankruptcy filings during the previous seven years generally require a 60-month recovery period from the most recent discharge or dismissal.
FHA, VA and USDA evaluate multiple bankruptcies under their own credit and underwriting requirements. Do not apply Fannie Mae or Freddie Mac rules automatically to government-backed mortgages.
Bottom Line
You can get a mortgage after bankruptcy, but there is no single waiting period for every borrower. Chapter 7 generally requires a period of reestablished credit after discharge, while FHA, VA and USDA may allow some Chapter 13 borrowers to qualify while still completing their repayment plans.
Fannie Mae and Freddie Mac also maintain their own conventional underwriting requirements. Your bankruptcy dates, underwriting method, foreclosure history and current financial profile all affect when you may qualify.
Frequently Asked Questions
How Long After Bankruptcy Can You Buy a House?
It depends on the bankruptcy chapter and mortgage program. After Chapter 7, FHA and VA commonly use a two-year benchmark. Fannie Mae generally requires four years, while Freddie Mac manually underwritten mortgages generally use a 48-month recovery period. USDA uses separate 36-month adverse-credit and underwriting rules.
How Long Do You Have to Wait to Buy a House After Chapter 7?
FHA and VA generally use a two-year benchmark after Chapter 7 discharge. Fannie Mae generally requires four years, or two with qualifying extenuating circumstances. Freddie Mac manually underwritten loans generally use 48 months, while USDA evaluates whether the discharge occurred within the previous 36 months and how the loan is underwritten.
How Long Do You Have to Wait to Buy a House After Chapter 13?
Some FHA, VA and USDA borrowers can qualify while a Chapter 13 plan is still active after meeting applicable payment-history and permission requirements. Fannie Mae generally requires two years after discharge or four years after dismissal. Freddie Mac uses the same 24- and 48-month periods for manually underwritten mortgages.
How Long After Bankruptcy Discharge Can I Buy a House?
The discharge date commonly starts the recovery period after Chapter 7. Chapter 13 rules differ because some government-backed programs may allow financing before discharge, while Fannie Mae and manually underwritten Freddie Mac mortgages generally measure their standard recovery periods from the discharge or dismissal date.
Can You Get a Mortgage While Still in Chapter 13?
Possibly. FHA, VA and USDA can permit financing during an active Chapter 13 plan when the borrower meets the applicable payment-history, underwriting and court or trustee permission requirements. Conventional agency rules generally require the bankruptcy to be discharged or dismissed before the standard recovery period begins.
Can You Get an FHA Loan One Year After Chapter 7?
Potentially, but only under FHA's exception rules. Manual underwriting may allow consideration after at least 12 months but less than two years when qualifying extenuating circumstances caused the bankruptcy and the borrower has since demonstrated responsible financial management.
Does a Dismissed Bankruptcy Have the Same Waiting Period as a Discharged Bankruptcy?
Not always. Fannie Mae generally requires two years after a Chapter 13 discharge but four years after dismissal. Freddie Mac's manually underwritten mortgages similarly use 24 months after discharge and 48 months after dismissal. Other mortgage programs apply their own rules.
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