VA loans after bankruptcy or foreclosure
A bankruptcy, foreclosure or short sale doesn't end your VA benefit. Here are the typical waiting periods and how to get ready to buy again.
Written by the FLO Mortgage team · Licensed mortgage broker, NMLS #1835856 · Updated October 2026
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At a glance
- Chapter 7: generally 2 years after discharge
- Chapter 13: possible after 12 months of plan payments
- Foreclosure or short sale: about 2 years typical
- Remaining VA entitlement may still be available
Talk with a licensed loan officer
Credit history
A past bankruptcy or foreclosure doesn't permanently rule out a VA loan. The VA's guidelines focus on whether you've re-established your credit and whether the problem was tied to circumstances that are now behind you. Many veterans buy again sooner than they expect.
Bankruptcy
Chapter 7
The VA generally disregards a Chapter 7 discharge that is more than two years old, provided you've re-established satisfactory credit. Between one and two years after discharge, approval is possible when the bankruptcy was caused by events outside your control, such as job loss, illness or divorce, and your credit has been clean since.
Chapter 13
You may qualify while still in your repayment plan once you've made 12 months of satisfactory payments and the court or trustee approves the new mortgage. After the plan is completed, the review focuses on your credit since.
Foreclosure, short sale and deed-in-lieu
Most lenders look for about two years after the foreclosure, short sale or deed-in-lieu, plus re-established credit. Documented extenuating circumstances help.
How to get ready
- Keep every account current. Twelve to 24 months of clean history is what underwriters look for.
- Open or keep a couple of tradelines active, such as a secured card or auto loan, and pay them on time
- Gather your bankruptcy discharge papers or foreclosure documents
- Write a short explanation of what caused the hardship and what changed
- Talk with a loan officer early. We can review your timeline and tell you what to work on.
Questions, answered
How long after Chapter 7 bankruptcy can I get a VA loan?
Generally two years after the discharge date. Some borrowers qualify between one and two years after discharge with strong re-established credit and documented circumstances beyond their control.
Can I get a VA loan while in Chapter 13?
Possibly. If you've made at least 12 months of on-time plan payments and the court or trustee approves the new mortgage, you may qualify.
How long after a foreclosure can I get a VA loan?
Most lenders look for about two years after the foreclosure date with re-established credit. If the foreclosed loan was a VA loan, part of your entitlement may be tied up until the VA's loss is repaid, but you may still have remaining entitlement to use.
Does a short sale count the same as a foreclosure?
A short sale is reviewed similarly. Lenders typically look for a waiting period and re-established credit, and if it was a VA loan with a loss, your entitlement may be affected.
More VA loan guides
- VA home loans overview
- VA loan questions, answered
- VA loan tools and calculators
- VA home buying roadmap
- VA loans for first-time buyers
- VA loans for active duty
- VA loans for Guard and Reserve
- VA appraisals and property requirements
- VA closing costs and seller concessions
- VA occupancy rules
- VA entitlement and second VA loans
- Assumable VA loans
- VA condos and property types
- VA manual underwriting
- Disabled veteran property tax exemptions
- VA streamline refinance (IRRRL)
- VA cash-out refinance
- VA funding fee exemption
- VA loans for surviving spouses
- VA residual income explained
Local VA loan help
Talk to a FLO Mortgage loan officer
Every FLO loan officer helps veterans, service members and military families with VA loans. Have a question these guides don't answer? Ask our team.
This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, property eligibility and program availability. Lender requirements may be stricter than the program guidelines described here. Not all applicants will qualify. Figures reflect 2026 VA guidelines and may change without notice. FLO Mortgage is licensed in Florida, Georgia, Michigan, North Carolina, Tennessee and Texas. Company NMLS #1835856. Equal Housing Opportunity. FLO Mortgage is not affiliated with or endorsed by the U.S. Department of Veterans Affairs or any government agency. Licensing & Disclosures.
Local, licensed help
Talk a VA loan through with a FLO loan officer
Every FLO Mortgage loan officer can walk you through this program, run the numbers for your situation and compare it with your other options. Have questions? Call our main office at (386) 882-9980.
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