How Long After Bankruptcy or Foreclosure Can You Get an FHA Loan?

There are borrowers who may have had a past history of bankruptcy or foreclosure. If you plan to get an FHA loan and have had a bankruptcy or foreclosure, it’s important to be aware of how this will impact your ability to get an FHA loan. What is the waiting period for an FHA loan following a bankruptcy or foreclosure?

In order to answer this question, it’s important to understand how the FHA views bankruptcies and foreclosures along with the different types of bankruptcies.


  • The FHA requires a minimum 2 year seasoning period following bankruptcy to extend an FHA loan to borrowers
  • The seasoning period for an FHA loan following bankruptcy will vary from lender to lender and the bankruptcy type
  • The waiting period begins from the date of the discharge of the bankruptcy

FHA Loan Rules After Bankruptcy

The FHA requires a minimum 2-year “seasoning period” following bankruptcy to accept a new FHA loan application. However, this period can be longer from lender to lender and depends on the type of bankruptcy that was filed.

Recommended Reading: How Long to Close an FHA Loan After Appraisal?

In addition, the lender may have their own set of additional qualifications required following bankruptcy in order to extend an FHA loan. The seasoning period or commonly referred to as the “waiting period” officially starts from the discharge date of the bankruptcy.

Chapter 7 Bankruptcy Waiting Periods

Chapter 7 bankruptcy is known as liquidation bankruptcy. It is meant to clear away unsecured debt and help you reset your finances. This will have a long-term impact on your credit report. Borrowers who have gone through Chapter 7 bankruptcy will have to

  • Wait at least 2 years after the official discharge date to qualify for an FHA loan

It’s important to note that the 2-year period is a minimum set by the FHA. Lenders can impose their own qualifications above the 2-year minimum and require additional documentation. In certain cases, you may be able to get around the 2-year waiting period if you can prove that the bankruptcy was beyond your control, although this is rare.

Chapter 13 Bankruptcy Waiting Periods

Chapter 13 bankruptcies can be complicated when it comes to getting an FHA loan. They are subject to strict underwriting requirements by the lender and the processes require a ton of court documentation. FHA rules permit lenders to approve an FHA loan application from a borrower who is currently paying on their Chapter 13 bankruptcy.

  • The bankruptcy payments have to be verified for a period of at least 1 year
  • The borrower will have to submit documentation showing all required payments have been made on time
  • The borrower will also have to get permission from the court to apply for the loan

Due to additional documentation required, the loan process can be lengthy for borrowers with Chapter 13.

FHA Loan After Foreclosures

The minimum waiting period for an FHA loan following a foreclosure is 3 years.

This waiting period begins when the foreclosure case has been closed. This will usually be the date the home’s title is transferred over. This is the FHA minimum waiting period and lenders can have longer periods depending on their own qualification standards.

If the original foreclosure involved an FHA loan, the three-year seasoning period begins when the FHA pays the prior lender on the foreclosure claim.

In certain situations, the lender may grant borrowers an exception to the three-year minimum waiting period. The exceptions include:

  • If the foreclosure was completely out of the borrower’s control, such as serious illness or death of the primary earner
  • The borrower has reestablished good credit following the foreclosure
  • The mortgage was foreclosed on due to divorce and the ex-spouse failing to stay current on the mortgage

Knowing how the seasoning periods affect you as a borrower is important because it can prevent you from getting an FHA loan.


How Long Does it Take to Foreclose on a FHA Loan?

Most mortgage companies being foreclosure proceedings 3-6 months after the first missed mortgage payment.

What happens When an FHA Loan is Foreclosed?

When an FHA loan gets foreclosed on, the FHA takes back the home and gets listed on the HUD Homestore. HUD lists all foreclosed FHA homes across the United States.

Can Discharged Bankrupts Get a Mortgage?

Discharged bankrupts can get a mortgage depending on the type of mortgage they are applying for, the kind of bankruptcy they had, and the waiting period they are subject to.