Mortgage After Chapter 7 Bankruptcy
FHA and at least one VA program allow a loan two years after discharge, and as soon as 12 months in some cases. Fannie Mae needs four years, or two with documented extenuating circumstances.
What you need after a Chapter 7
Each item below is a requirement of FHA, Fannie Mae, or at least one other program we offer.
- On FHA, two years since the discharge date.
- Reestablished good credit, or no new credit taken on.
- For less than two years on FHA, a hardship beyond your control and proof you manage money responsibly.
- Bankruptcy and discharge documents, if your credit report does not confirm the discharge.
- On a manually underwritten FHA loan, the events behind the bankruptcy are not likely to happen again.
- Any debts not wiped out are paid off or on a set repayment schedule.
Two years on FHA
Sooner with hardship
VA options too
Fannie Mae after four
Non-QM from 12 months
Multiple filings differ
How Soon After Chapter 7 Can You Buy
It depends on the loan type. FHA and at least one VA program can work two years after discharge. Fannie Mae waits four.
FHA does not rule you out after a Chapter 7 once at least two years have passed since the discharge and you have reestablished good credit or chosen not to take on new debt. A discharge less than two years old is reviewed by an underwriter by hand.
Between 12 and 24 months can work on FHA if the bankruptcy came from circumstances beyond your control and you have managed your finances responsibly since. At least one VA program allows 1 to 2 years with two credit accounts reestablished and a documented hardship. Still in a repayment plan instead? See our Chapter 13 mortgage page.
Fannie Mae needs four years from the discharge or dismissal date, or two years with documented extenuating circumstances. At least one non-QM program allows a loan 12 months after a bankruptcy on a purchase or rate-and-term refinance.
Why choose Saxton for a mortgage after Chapter 7
For buyers rebuilding after a Chapter 7 who want to know the real waiting period for each loan type.
Two Years On FHA
FHA allows a loan once at least two years have passed since the discharge, if you have reestablished good credit or chosen not to take on new debt.
Sooner With Hardship
On FHA, 12 to 24 months can be acceptable when the bankruptcy was caused by circumstances beyond your control and you have shown you can manage your finances.
VA Options Too
At least one VA program needs two years with no added requirements, or 1 to 2 years with two credit accounts reestablished and a documented hardship, not divorce. Less than 12 months is not allowed.
Fannie Mae After Four
Fannie Mae needs four years from the discharge or dismissal date, or two years with documented extenuating circumstances such as a sudden, significant, and prolonged loss of income.
Non-QM From 12 Months
At least one non-QM program allows a loan 12 months after a bankruptcy on a purchase or rate-and-term refinance. Others wait 24 months or longer.
Multiple Filings Differ
A Fannie Mae loan needs five years after more than one filing in seven years, or three with extenuating circumstances. At least one jumbo program does not allow multiple bankruptcies.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about buying a home after Chapter 7.
Two years from the discharge date, or as soon as 12 months if the bankruptcy was caused by circumstances beyond your control and you have managed your finances responsibly since.
On a Fannie Mae loan, four years from the discharge or dismissal date, or two years with documented extenuating circumstances.
Yes. At least one VA program needs two years with no added requirements, or 1 to 2 years with two credit accounts reestablished and a documented hardship. Divorce does not count as a hardship.
On a Fannie Mae loan, nonrecurring events beyond your control that caused a sudden, significant, and prolonged drop in income or a catastrophic increase in financial obligations.
Not on a Fannie Mae loan. One bankruptcy for you and one for your co-borrower is not considered a multiple bankruptcy.
On a Fannie Mae loan, the bankruptcy waiting period can apply if documents show the mortgage was discharged in the bankruptcy. Otherwise, the longer of the bankruptcy or foreclosure waiting period applies. When a foreclosure, deed in lieu, or short sale happened along with the bankruptcy, at least one VA program starts the clock at the later of the discharge date or the date the home’s title transferred.
Yes. At least one program allows a loan 12 months after a bankruptcy on a purchase or rate-and-term refinance, and others wait 24 months or longer.
Find out what you qualify for
Tell us when your Chapter 7 was discharged and what you want to do, and we will show you the programs that fit.
Get Pre-QualifiedLoan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.