CREDIT WAITING PERIODS
A past credit event doesn’t have to end your homeownership plans.
Bankruptcy, foreclosure, and a short sale can affect when you may qualify for another mortgage. The event, loan program, dates, and your credit since then all matter.
Discuss your next stepsUpdated October 21, 2026. These are general planning guidelines, not an approval or a guaranteed eligibility date. Lenders may impose stricter requirements.
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Two different clocks: reporting and mortgage eligibility
Most negative credit information can generally be reported for seven years; bankruptcies can remain for up to ten years, with exceptions. Mortgage waiting periods follow separate program rules. You may be eligible for financing while the event still appears on your report; its removal does not guarantee approval.
Conventional loans: Fannie Mae guidelines
This table summarizes standard Fannie Mae waiting periods. Freddie Mac and individual lender requirements must be checked separately.
| Credit event | Typical wait | Starting point |
|---|---|---|
| Chapter 7 or Chapter 11 bankruptcy | 4 years | Discharge or dismissal |
| Chapter 13 bankruptcy — discharged | 2 years | Discharge |
| Chapter 13 bankruptcy — dismissed | 4 years | Dismissal |
| Multiple bankruptcy filings within 7 years | 5 years | Most recent discharge or dismissal |
| Foreclosure | 7 years | Completion |
| Short sale, deed-in-lieu or mortgage charge-off | 4 years | Completion or mortgage charge-off date |
Documented extenuating circumstances may allow shorter periods with additional conditions. A mortgage discharged in bankruptcy may receive different treatment if the lender verifies the discharge. The lender must confirm the applicable timing milestone, underwriting findings, and re-established credit.
Source: Fannie Mae Selling Guide B3-5.3-07 · Explore conventional loans
FHA loans
| Credit event | General guideline |
|---|---|
| Chapter 7 bankruptcy | Generally 2 years after discharge at FHA case-number assignment. A shorter period of at least 12 months may be considered under documented exception criteria and manual underwriting. |
| Active Chapter 13 repayment | At least 12 months of the payout period, satisfactory on-time payments, and written bankruptcy-court permission; manual underwriting applies. |
| Foreclosure or deed-in-lieu | Generally 3 years from transfer of ownership to FHA case-number assignment; documented exceptions may apply. |
| Short sale | Generally 3 years from title transfer to case-number assignment. A specific exception may apply when prior mortgage and installment payments were timely for the preceding 12 months; manual underwriting and lender review are required. |
A bankruptcy discharged within two years of case-number assignment requires manual-underwriting review. Chapter 11, dismissed cases, federal debt, and overlapping events need individual analysis.
Sources: HUD Handbook 4000.1, credit requirements · HUD bankruptcy guidance · Explore FHA loans
VA loans
- Chapter 7 bankruptcy: A discharge more than 2 years before closing may generally be disregarded. Earlier consideration has additional requirements.
- Foreclosure: A completed foreclosure more than 2 years before closing may generally be disregarded, subject to the full credit review.
- Chapter 13: Favorable consideration may be possible after satisfactory completion, or after at least 12 months of satisfactory plan payments with trustee or bankruptcy-judge approval for new credit.
- Short sale or deed-in-lieu: A waiting period may not be necessary when prior payment history was unaffected and the borrower cooperated with the servicer. Lender requirements and the full circumstances still matter.
A loss on a prior VA loan may affect remaining entitlement. High-balance lender overlays are not universal VA rules. Chapter 11 and combined bankruptcy/property events require specific review.
Source: VA Lenders Handbook, Chapter 4: Credit Underwriting · Explore VA loans
Which dates and documents should you gather?
- Bankruptcy discharge or dismissal orders and the repayment history for a Chapter 13 plan.
- Recorded deed, foreclosure completion documents, or short-sale closing statement establishing the title-transfer date.
- Mortgage charge-off records, if applicable, and documents identifying debts discharged in bankruptcy.
- An explanation of the circumstances and supporting documents for any exception request.
Discharge and dismissal are different. The first missed payment or bankruptcy filing date is not automatically the date a mortgage waiting period begins. More than one event can create overlapping timelines.
We can review the program options and documents needed before you make a purchase commitment. Use your originator’s secure application channel for sensitive records.
Let’s review your path forward.
Share your goals and ask which loan programs may fit your timeline. Income, assets, credit, property eligibility, and lender approval still apply.
Explore your options Call (847) 238-9932