FHA after bankruptcy or foreclosure · HUD waiting periods
When you can buy again with an FHA loan
A bankruptcy or foreclosure doesn't rule out an FHA loan for good. HUD sets a waiting period for each event: two years after a Chapter 7 discharge, one year into a Chapter 13 plan, and three years after a foreclosure, deed in lieu or short sale. HUD shortens some of these for documented hardships beyond your control. Use the wait to rebuild your credit, and talk with a licensed loan officer before the clock runs out.
2 years
After a Chapter 7 discharge.
12 months
Into a Chapter 13 plan, with the bankruptcy court's written permission.
3 years
After a foreclosure, deed in lieu or short sale.
HUD's waiting periods at a glance
Chapter 7 bankruptcy: 2 years from the discharge date. 12 to 24 months with documented extenuating circumstances.
Chapter 13 bankruptcy: after 12 months of on-time plan payments, with the bankruptcy court's written permission.
Foreclosure: 3 years from the date title transferred out of your name.
Deed in lieu of foreclosure: 3 years from the date of the deed.
Short sale: 3 years from the sale, or no wait if you were current on your mortgage and installment debts for the 12 months before it.
Credit counseling plan: after 12 months of on-time payments, with the agency's written permission.
Source: HUD Handbook 4000.1, Manual Underwriting of the Borrower, Evaluating Credit History. HUD counts each period to the date your lender gets an FHA case number.
Chapter 7 bankruptcy
HUD counts two years from your discharge date, not the date you filed. Your lender checks the date on your credit report or your discharge papers.
Between 12 and 24 months after discharge, HUD allows an FHA loan if two things are true: a circumstance beyond your control caused the bankruptcy, and you've handled your money responsibly since. A discharge less than two years old also sends your file to manual underwriting, where a person reviews it and HUD's ratio limits apply. Our FHA requirements guide lists those limits.
Chapter 13 bankruptcy
You don't have to finish your Chapter 13 plan first. HUD allows an FHA loan once you've made 12 months of plan payments, all on time, and the bankruptcy court gives written permission to take on the new mortgage. Your bankruptcy attorney or trustee usually handles that request.
If your plan was discharged less than two years ago, your file goes to manual underwriting. Your lender also documents that whatever led to the bankruptcy isn't likely to happen again.
Foreclosure and deed in lieu
HUD's three years start on the date title left your name, not the date you stopped paying or the date the lender filed. For a deed in lieu, the clock starts on the date of the deed.
• Florida: foreclosures go through the courts. Title transfers after the foreclosure sale, when the clerk issues the certificate of title, and that date usually starts the clock.
• Georgia: most foreclosures happen out of court at a public sale on the courthouse steps, usually held on the first Tuesday of the month. The sale date and the deed that follows it set the clock.
HUD can make an exception if the foreclosure came from a documented hardship beyond your control, such as a serious illness or the death of a wage earner, and you've rebuilt good credit since. HUD doesn't count divorce as a hardship, with one exception: your mortgage was current at the divorce, your ex-spouse kept the home, and the foreclosure came later.
Short sale
A short sale generally carries the same three-year wait, counted from the date title transferred to the buyer. The big exception: if you made every mortgage payment within the month it was due for the 12 months before the short sale, and kept your car loans and other installment debts current too, HUD doesn't make you wait.
The hardship and divorce exceptions work the same way they do for a foreclosure. Bring your short sale closing statement, because it proves the date and the payoff.
Credit counseling or a debt payment plan
Being in a consumer credit counseling plan doesn't disqualify you. HUD asks for 12 months of on-time plan payments and written permission from the counseling agency to take on the mortgage.
What counts as extenuating circumstances
HUD's examples are a serious illness and the death of a wage earner. Your lender needs a written explanation from you and records that prove the event was beyond your control, such as medical bills or a death certificate. HUD says divorce generally doesn't qualify, and neither does being unable to sell a home after a job transfer. A shorter wait also isn't automatic. An underwriter has to agree that your credit since then shows you can handle a mortgage.
Getting ready while you wait
The waiting period is a good time to set up a strong file. Underwriters look closely at the last 12 months:
• Pay everything on time. Rent, car loans, cards and utilities. A clean 12 months matters more than your score alone.
• Open or keep a few accounts. A secured card or a small installment loan, paid on time, rebuilds your credit history.
• Save cash reserves. Savings left after closing count as a compensating factor in manual underwriting.
• Gather your papers. Discharge papers, court permission for a Chapter 13, and closing or deed documents for a foreclosure, deed in lieu or short sale.
• Write your explanation. One page on what happened, when, and what has changed since.
FHA waits compared with conventional loans
Conventional loans make you wait longer: four years after a Chapter 7 discharge and seven years after a foreclosure under Fannie Mae's rules. That gap is why many buyers rebuilding after a bankruptcy start with FHA. See the full side-by-side in FHA vs conventional for first-time buyers, and our FHA loan overview. FLO Mortgage arranges FHA loans through partner lenders for buyers in Florida and Georgia (FHA in Georgia).
FHA after bankruptcy or foreclosure: common questions
How long after a Chapter 7 bankruptcy can I get an FHA loan?
HUD's standard is two years from your discharge date. HUD allows 12 to 24 months if a circumstance beyond your control caused the bankruptcy and you've managed your finances responsibly since.
Can I get an FHA loan while I'm still in Chapter 13?
Yes, once you've made 12 months of on-time plan payments and the bankruptcy court gives written permission to take on the new mortgage.
How long after a foreclosure can I get an FHA loan?
Generally three years from the date title transferred out of your name. HUD can make an exception for a documented hardship beyond your control, such as a serious illness or the death of a wage earner, if you've rebuilt good credit.
Do I have to wait after a short sale?
Usually three years from the sale. If you paid your mortgage and installment debts on time for the 12 months before the short sale, HUD doesn't require a wait.
Does divorce count as an extenuating circumstance?
Generally no. HUD makes one exception: your mortgage was current at the time of the divorce, your ex-spouse kept the home, and the foreclosure or short sale happened afterward.
Will my loan be manually underwritten after a bankruptcy?
If your discharge is less than two years old, or a foreclosure, deed in lieu or short sale is less than three years old, HUD sends the file to manual underwriting. A person reviews it, and HUD's manual ratio limits apply.
Want to know when you can buy?
A licensed loan officer can check your dates against HUD's rules and tell you what to work on now. Prefer to talk? Call (386) 882-9980.
This page is general education, not legal advice, a commitment to lend or an offer of specific terms. All loans are subject to credit approval, underwriting guidelines and property eligibility. Not all applicants will qualify, and exceptions to HUD's waiting periods are up to the underwriter. FLO Mortgage arranges FHA loans through partner lenders and does not underwrite or fund them. Waiting periods come from HUD Handbook 4000.1, and the conventional comparison comes from the Fannie Mae Selling Guide, checked October 22, 2026; both may change. FLO Mortgage is licensed as a mortgage lender in Florida (MLD2621) and Georgia (#1835856), Company NMLS #1835856; Broker Owner Joy McCoy Flores, NMLS #1096400. Equal Housing Opportunity. Licensing & Disclosures.