Q&A: How many years do I have to wait to get a mortgage after filing chapter 7 bankruptcy, according to FHA?

Posted on Sep 17, 2012 in FHA Information

by Chris Pederick

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Question by lex: How many years do I have to wait to get a mortgage after filing chapter 7 bankruptcy, thumb according to FHA?

Best answer:

Answer by PooPooLaTrash
From this page: http://www.fha-home-loans.com/

Q. How long after a bankruptcy can I use a FHA loans for buying a home or mortgage refinance?
A. You may buy a home or do a refinance mortgage using FHA loans two years after the date of discharge for a bankruptcy, assuming that you have maintained perfect credit since the discharge of the bankruptcy with a FHA streamline refinance loan.

Note that it says “two years after the date of discharge”, not the date of filing.

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5avg.rating 20 votes.


  1. your credit score might not recover that much in only 2 yrs – I was barely able to get a high interest rate used car loan after 2 yrs

  2. According to the Bankruptcy Code and the Fair Credit Reporting Act, a consumer credit report may include information on Chapter 7 and 13 bankruptcies for 10 years from the start of the case. One major consumer credit reporting agency eliminates the data on Chapter 13 after seven years though it legally is not required to do so. Other credit information is usually reported for seven years. Even though many people are eligible for a mortgage with a good rate even before their bankruptcy is removed from their credit report. If you take care to rebuild your credit and wait a short period of time, your mortgage should be comparable to what you could have gotten before you filled for bankruptcy. Typically in 18-24 months after you would be eligible for a mortgage, of course, the longer you wait the better your rate would be. Some people do become eligible after 12 months. With a bankruptcy on your record, lenders usually place more emphasis on the amount of your down payment and the verification of stable income than they would have with other borrowers. You will even be eligible for FHA and VA guaranteed loans after two years, provided you keep your current credit in good standing. After the two year waiting period is over, you should be able to get financing easily. If you need to get a mortgage before the waiting period is over you will need to have an impeccable payment history since your bankruptcy and you will most likely be expected to give a higher down payment.

    Many lenders are willing to pre-approve you for up to 28% of your pretax income, but try not to stretch yourself too thin after this point. It is more advisable to try to find a home where you only have to pay 20% of your pretax income or wait till your financial situation is more solid. Once you have been pre-approved you should give yourself a 15-20% cushion form you pre-approved total incase of unforeseen financial hardship. If you qualify try to get a FHA or VA loan that require a lower down payment and FHA is known for being more lenient when it comes to bankruptcies.