New Mortgage After Bankruptcy / Foreclosure

How long do you need to wait to get a new mortgage if you have a bankruptcy and a forclosure discharged on your credit?

3 Answers

The time frame for recovery after a bankruptcy and or foreclosure is four years as a general rule of thumb.

This time frame can vary based on the circumstances. For example, if your bankruptcy or foreclosure was due to medical reasons then it is possible that you could qualify in as little as 2 years from the time your bankruptcy is discharged or the foreclosure redeemed, which ever occurs last. If there is no medical reason for the situation and it is due to financial neglect then it is 4 years after the end of the *last event, either the home is repurchased or bankruptcy discharged.

One other important point to know is that bank underwriters also want to see 4 years of RE-established credit history so it is important to start working on as soon as possible to help you on the road to recovery.

For a Bankruptcy:

Chp 7 2 years for FHA government loans and  Chp 13 for FHA is 1 year with the approval of the court appointed agent unless it has been full discharged and closed.

For conventional loans (non government loans) for any kind of bankruptcy the waiting period is 4 years.

Both depend on if you have shown that you have re-established your credit meaning no late payments, collections, or negative on your credit since your BK.

Waiting period on Foreclosures is 3 years for both government loans and conventional loans.

If you fall within any of these you will have to provided full copies of your bankruptcy paperwork with your loan. 


There is no actual period of time you need to wait, but being bankrupt recently will most definitly cause for a bad credit score. Waiting a couple of years or a couple of fiscal credit reviews untill you get back on your feet is most advisable, you will learn that bankruptcies tend to dissolve and affect yput credit score less and less after 3-4 years.

A bad credit score will make it very difficult for you to take a mortgage or if at all - your rate will be very high (Lender's look at the credit score and worsten the mortgage's terms to bad Credit loaners that are cosidered riskier).