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Bankruptcy or Foreclosure

Minimum Waiting Periods To Qualify for an FHA Mortgage After Bankruptcy or Foreclosure 

CHAPTER 7 – (minimum 24 months) The  FHA mortgage applicant may still qualify for a new FHA mortgage after declaring Chapter 7 bankruptcy, if at least 24 months have passed since the bankruptcy discharge date. The FHA mortgage applicant  must also have re-established proof of timely payment history or have opted to incur no new debts (this means you specifically chose to take out no new loans, credit cards, etc.). Some FHA mortgage lenders will accept a time period of less than 2 years (though usually no less than 1) if you can show the bankruptcy was due to extenuating circumstances.

CHAPTER 13 – (minimum 12 months)The FHA mortgage applicant may also still qualify for an FHA insured loan after declaring Chapter 13 bankruptcy after at least 12 months of the bankruptcy repayment plan period has passed and the borrower has been making satisfactory payments. In these cases, the borrower must also request permission from the court to enter into a new loan contract.

FORECLOSURE –  (minimum 24 months)To qualify for an FHA mortgage or a ‘deed-in-lieu of foreclosure you must wait a full 3 years after the title/deed transferred out of your name.  If there were extenuating circumstances beyond your control and you have re-established good credit since the foreclosure, you may still qualify. This will depend upon the lender and the circumstances. Possible reasons for past foreclosure that may be accepted include the death of a wage earner in the family or serious illness.

DEED IN LIEU-(minimum 36 months) A FHA mortgage applicant is generally not eligible for a new FHA-insured mortgage if the FHA mortgage applicant had a foreclosure or a deed-in-lieu of foreclosure in the three-year period prior to the date of case number assignment.The 3 three-year period begins on the date in which Title or Deed transferred from the FHA mortgage applicant.If the credit report does not indicate the date of the foreclosure or deed-in-lieu of foreclosure, the FHA Mortgage Lender must obtain the Settlement Statement, deed or other legal documents evidencing the date of property transfer.If the foreclosure or deed-in-lieu of foreclosure was the result of a circumstance beyond the FHA mortgage applicant’s control, the FHA Mortgage Lender must obtain an explanation of the circumstance and document that the circumstance was beyond the FHA mortgage applicant’s control.


US Mortgage Lenders has an extensive lender network that allows us to provide unique and mortgage solutions. Contact US for the most update information on terms and conditions. All Information on this site Is for example, hypothetical purposes and should NOT be relied on for decision making.
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