Mortgages by Matt Pruitt, NMLS 846749
A mortgage after bankruptcy or foreclosure: how long you actually wait.
A bankruptcy, foreclosure, short sale, or deed-in-lieu doesn't mean you can never own a home again. It means there's a clock. How long that clock runs depends on what happened, when it ended, and which loan you use. Here's how the waiting periods generally work for FHA, VA, and conventional loans, what non-QM can do when you don't want to wait, and what to do in the meantime. I'm in Fort Worth, and most of my clients are around DFW.
The short answer
For most people, it's somewhere between one and seven years, and the loan type makes the biggest difference. FHA and VA tend to be the most forgiving. Conventional loans tend to want the longest wait, especially after a foreclosure. Some non-QM programs can work sometimes in as little as two years.
Two things trip people up. First, the clock usually starts on the discharge or dismissal date of a bankruptcy, or the completion date of a foreclosure, short sale, or deed-in-lieu. Not the day you filed, and not the day you moved out. Second, a waiting period is a minimum, not a guarantee. The lender still looks at your credit since the event, your income, your debts, and your savings.
Typical waiting periods by loan type
These are the commonly published guideline ranges. Each agency's own rules have details and exceptions, and lenders can add stricter requirements of their own.
FHA
- Chapter 7 Generally two years from the discharge date. Sometimes as little as one year when the bankruptcy came from documented circumstances beyond your control and you've handled credit well since.
- Chapter 13 May be possible after 12 months of on-time plan payments, with written permission from the bankruptcy court.
- Foreclosure Generally three years from when the foreclosure was completed.
- Short sale or deed-in-lieu Typically three years, with some exceptions.
- Debt-to-income With an automated approval, FHA can generally go as high as 56.99% DTI, depending on the rest of the file.
Source: HUD's FHA Single Family Handbook 4000.1
VA
- Chapter 7 Typically two years from the discharge date. Between one and two years can be considered when you've re-established credit and the cause was beyond your control.
- Chapter 13 May be possible after 12 months of on-time plan payments, with approval from the trustee or the bankruptcy judge.
- Foreclosure, short sale, or deed-in-lieu Generally two years from completion, with similar case-by-case room between one and two years.
- Debt-to-income VA generally has no hard DTI cap. Residual income, the money left over each month after the big bills, matters a lot.
More on the VA home loan program
Conventional
- Chapter 7 Generally four years from the discharge or dismissal date, or two years with documented extenuating circumstances.
- Chapter 13 Generally two years from the discharge date, or four years from a dismissal.
- Foreclosure Generally seven years, or three years with documented extenuating circumstances and extra restrictions.
- Short sale or deed-in-lieu Generally four years, or two years with documented extenuating circumstances.
Source: Fannie Mae Selling Guide, waiting periods
Non-QM
- Bankruptcy, foreclosure, short sale, or deed-in-lieu Some programs can work sometimes in as little as two years after the event. Others look for three or four, depending on the file.
- The trade Pricing is usually higher, and you may need to bring more cash to the table. The best terms generally open up the longer it's been.
More in the non-QM loan guide
Guideline ranges as commonly published, checked October 2026. Guidelines change, and meeting a waiting period doesn't guarantee approval. Subject to qualification and program guidelines.
Chapter 7 vs Chapter 13, in plain English
Chapter 7 is the liquidation kind. Most qualifying debts are wiped out, usually within a few months, and the waiting period starts at the discharge. Chapter 13 is the repayment kind. You pay creditors through a court-approved plan over three to five years. Because you're already showing a track record of payments, FHA and VA may consider you before the plan is finished, and conventional loans generally give a shorter wait after a Chapter 13 discharge than after a Chapter 7.
If the case was dismissed instead of discharged, the rules are usually stricter. The US Courts site has a good overview of bankruptcy basics. I'm not a bankruptcy attorney, so talk to yours about the case itself. I'll handle the mortgage side.
Foreclosure, short sale, and deed-in-lieu
A short sale or deed-in-lieu usually gets a shorter wait than a full foreclosure on conventional loans, which is one reason people choose them. With FHA, they're generally treated about the same as a foreclosure. With VA, they're generally on the same clock.
One wrinkle: if the old mortgage was included in a bankruptcy and the foreclosure came after, some guidelines let the bankruptcy waiting period apply instead of the foreclosure one, as long as the paperwork shows the mortgage debt was discharged. Otherwise, the longer of the two usually applies. Bring the bankruptcy schedules and the foreclosure documents, and I'll figure out which date controls.
Can't wait? Non-QM options after a credit event
If the FHA, VA, or conventional clock is still running, some non-QM programs are built for people rebuilding after a bankruptcy, foreclosure, short sale, or deed-in-lieu. Depending on the file, they can work sometimes in as little as two years after the event. Here's what they can cover:
The loan
Purchase, rate-and-term refinance, and cash-out refinance. On a Texas homestead, cash-out follows the Texas 50(a)(6) rules. Loans from $100,000 up to $3.5 million. Debt-to-income ratios up to 55% on some files.
The property
Primary homes, second homes, and investment property. Single-family and 1-4 units. Condos, including non-warrantable condos and condotels.
The income
Full documentation, or alternatives for people whose tax returns don't tell the whole story: bank statements, 1099s, or asset depletion if you have savings but not much paycheck.
The borrower
Buying investment property? Borrowing in an LLC is available for investment properties only. Your own home stays in your name. Rental investors who qualify on the property's rent should also look at DSCR loans.
The tradeoff is cost. Non-QM pricing is usually higher than FHA, VA, or conventional, and you'll often need more cash to close. If you're only a few months from the end of a regular waiting period, waiting can be the cheaper move. If waiting means missing the house, a non-QM loan now and a refinance later can make sense. I'll lay out both so you can decide. Some non-QM loans have prepayment penalties, so ask about that up front.
What to do while you wait
- Pull your credit reports Get them free at AnnualCreditReport.com. Make sure debts included in the bankruptcy show a zero balance and the right status. The CFPB explains how to dispute errors.
- Re-establish credit A couple of small accounts, used lightly and paid on time every month, do more than you'd think. Late payments after a bankruptcy or foreclosure hurt more than the event itself.
- Keep your paperwork Discharge papers, the bankruptcy schedules, the foreclosure deed or short sale settlement statement. The exact dates matter.
- Save Cash in the bank helps on every loan type, and it matters even more on a credit event loan.
- Write down what happened A short, honest explanation of what caused it and what changed. Job loss, medical bills, or a divorce are common, and the story can help.
What to send me
- Your bankruptcy discharge (or dismissal) papers, and the case number
- The foreclosure deed, short sale settlement statement, or deed-in-lieu paperwork, if that applies
- The dates of each event
- A short letter on what happened and what changed
- Your usual income documents: pay stubs and W-2s, tax returns, or bank statements if you're self-employed
Buying again in Fort Worth and DFW
My office is in Fort Worth, I live in Aledo, and I've been doing this since 2012. I lend in Texas, Oklahoma, California, Colorado, Montana, Florida and Georgia, and I can help in all the other states too. A lot of the people I help after a credit event have been through a layoff, a business that didn't make it, a medical mess, or a divorce. That's life. What I care about is where you are now. Whether you're looking at a mortgage after bankruptcy in Fort Worth, a home loan after foreclosure, in DFW or wherever you're buying, or just trying to figure out which clock you're on, call me and I'll tell you straight.
How to start
Send the short form, call, or email. Tell me what happened, when it ended, and what you want to buy or refinance. I'll tell you which loans you can use now, which ones you're waiting on, and what would help in the meantime.
Phone: 817-873-6288
Email: [email protected]
Bankruptcy and foreclosure questions
How long after bankruptcy can I buy a house?
It depends on the type of bankruptcy and the loan. As commonly published guidelines read, FHA and VA generally look for about two years after a Chapter 7 discharge, and conventional loans generally look for four. With Chapter 13, FHA and VA may be possible after 12 months of on-time plan payments with court or trustee approval. Some non-QM programs can work sometimes in as little as two years. Every file is different, and none of this is a promise of approval.
Can I get a home loan after a foreclosure in Texas?
Often, yes, once enough time has passed. Commonly published guidelines generally put FHA at about three years after the foreclosure, VA at about two, and conventional at seven, with shorter periods possible in some cases with documented extenuating circumstances. Some non-QM programs can work sooner, sometimes in as little as two years.
Does the waiting period start when I filed or when the bankruptcy was discharged?
Usually the discharge or dismissal date for a bankruptcy, and the completion date for a foreclosure, short sale, or deed-in-lieu. Not the filing date. Keep your discharge papers and closing documents handy, because the lender will want the exact dates.
Do I have to wait for my Chapter 13 to be discharged?
Not always. FHA and VA may consider a borrower who is still in a Chapter 13 plan after about 12 months of on-time payments, with permission from the court or trustee. Conventional loans generally look for two years after the discharge date.
What is a non-QM loan after bankruptcy?
A non-QM loan doesn't follow Fannie Mae, Freddie Mac, FHA, or VA rules, so the waiting periods can be shorter. Some programs work after a bankruptcy, foreclosure, short sale, or deed-in-lieu, sometimes in as little as two years. Pricing is usually higher than a government or conventional loan, so the plan is often to refinance later once the longer waiting periods have passed.
Can I buy an investment property or a condo after a credit event?
Possibly. Some non-QM credit event programs cover primary homes, second homes, and investment property, 1-4 units, condos including non-warrantable condos and condotels, and borrowing in an LLC on investment property. Subject to qualification and program guidelines.
Will a past bankruptcy or foreclosure keep me from ever getting a mortgage?
No. A bankruptcy or foreclosure is a waiting period, not a life sentence. Rebuild your credit, keep your payments on time, save, and keep your paperwork. Then call me and we'll look at which clock you're on.
General information only, not legal advice. Waiting periods are general guideline ranges and can change. Subject to qualification and program guidelines. Not all applicants will qualify. Not a commitment to lend.
More on the other programs in the non-QM loan guide, or the FAQ page. Or head back home.
