FHA generally requires 2 years after a Chapter 7 discharge, 12 months of on-time Chapter 13 plan payments (with court or trustee approval), and 3 years after a foreclosure, deed-in-lieu, or short sale. Documented extenuating circumstances may shorten some of these periods, and you'll still need re-established credit and a clear CAIVRS check. Lenders may add their own overlays.
FHA waiting periods by credit event
FHA sets minimum waiting periods for major credit events. These are HUD's baseline rules from the Single Family Housing Policy Handbook (4000.1); individual lenders can require more time. The key detail is which date starts the clock — it's rarely the date you first fell behind.
| Credit event | General FHA waiting period | Clock usually starts |
|---|---|---|
| Chapter 7 bankruptcy | 2 years | Discharge date (not the filing date) |
| Chapter 13 bankruptcy | 12 months of on-time plan payments | Within the plan, with trustee or court written permission |
| Foreclosure | 3 years | Date title transferred out of your name |
| Deed-in-lieu of foreclosure | 3 years | Date the deed was transferred |
| Short sale (pre-foreclosure sale) | 3 years | Date of the sale; an exception may apply if you stayed current |
If a foreclosure was included in a bankruptcy, the foreclosure waiting period can still apply on its own timeline, depending on when the property actually transferred. That overlap trips people up, so bring both sets of documents when you talk to Matthew.
Where am I on the FHA waiting-period clock?
Six questions to orient yourself. This doesn't calculate an exact date — it just shows whether the timing and credit pieces look ready for Matthew to review.
If you filed Chapter 7, has it been at least two years since the discharge date (or is that not relevant to you)?
If you're in Chapter 13, have you made at least 12 months of plan payments on time (or is that not relevant to you)?
If you had a foreclosure, deed-in-lieu, or short sale, has it been at least three years since it was completed (or is that not relevant to you)?
Have you paid every bill on time for roughly the last 12 months?
Do you have at least a couple of active accounts (credit card, auto, rent, utilities) reporting in your name?
Are you current on any federal debts — no defaulted student loans, SBA loans, or prior FHA claims?
Your answers stay in your browser — nothing is saved or sent. This is a quick orientation, not a loan decision.
Buying during or right after Chapter 13
Chapter 13 is the one case where an FHA purchase can happen while you're still in the plan. Generally you'll need at least 12 months of plan payments made on time and written permission from the trustee or bankruptcy court to take on the new mortgage. The file is usually manually underwritten, which means an underwriter looks closely at your budget rather than relying only on an automated decision.
If your Chapter 13 has already been discharged, the timing matters: a discharge within roughly the last two years may still lead to a manual review, while an older discharge usually doesn't carry extra conditions beyond normal credit standards. Your plan payment history is a strong piece of evidence either way — keep the trustee's payment ledger handy.
Want a straight answer for your situation? Skip the call center — Matthew will review your credit, budget, and FHA options himself.
Talk with MatthewExtenuating circumstances: when the clock can be shorter
HUD recognizes that some credit events happen because of things outside a borrower's control — for example, a serious illness, a death of a wage earner, or a job loss not caused by the borrower. When the event was clearly caused by circumstances like these, and the borrower has since recovered financially, some waiting periods may be shortened.
- Documentation is everything: letters of explanation alone generally aren't enough; expect to show medical records, a layoff notice, a death certificate, or similar proof.
- Recovery must be shown: the underwriter wants evidence that the problem is behind you — steady income and clean payment history since.
- Divorce is usually not enough by itself, and neither is simply being unable to sell a home.
- Lender overlays apply: some lenders won't use the exception at all. Matthew works with more than one lender and can check which ones will review it.
Re-established credit: what underwriters actually look at
Meeting the waiting period is only half of it. FHA also expects that you've re-established good credit or chosen not to use credit since the event. In practice, that means:
- No new late payments on rent, auto, cards, or installment loans — especially in the last 12 months.
- A credit score that meets FHA's tiers (580+ for the 3.5% minimum down payment; 500–579 generally requires 10% down) and any lender overlay. See FHA credit score requirements.
- Income and debts that fit FHA's debt-to-income guidelines.
- For thin files, alternative credit such as rent, utilities, phone, or insurance payments may help.
Practical tip: one secured credit card and one small installment account, both paid perfectly for a year, usually tell a stronger story than a pile of new accounts opened at once.
CAIVRS and federal debt
CAIVRS (the Credit Alert Verification Reporting System) is a federal database that flags people who are delinquent on, or defaulted on, federal debt — such as a federal student loan, an SBA loan, or a prior FHA loan that resulted in a claim. Every FHA borrower is screened. A CAIVRS hit generally has to be resolved (for example, by bringing the debt current, entering an approved repayment arrangement, or showing it was paid) before an FHA loan can move forward.
A prior FHA foreclosure can also show up here, which is one reason the three-year foreclosure clock and the CAIVRS check are often reviewed together.
Getting ready while the clock runs
- Find your exact dates. Pull the bankruptcy discharge order, the recorded deed from a foreclosure, or the settlement statement from a short sale.
- Check all three credit reports. Make sure discharged debts show a zero balance and old accounts aren't reporting as still delinquent.
- Build a clean 12-month stretch. On-time payments on everything, low card balances.
- Save for the down payment and reserves. See FHA down payment rules for gift and assistance options.
- Talk with Matthew a few months early. He can review the file before the date arrives so there are no surprises. HUD guidelines change, and lenders may add overlays — Matthew will confirm the current rules for your file.
Frequently asked questions
Does the Chapter 7 waiting period start when I filed or when it was discharged?
Generally the discharge date. Your discharge order from the court shows it.
Can I get an FHA loan while still in Chapter 13?
Possibly. FHA generally looks for at least 12 months of on-time plan payments and written permission from the trustee or court. The loan is usually manually underwritten.
Is a short sale treated the same as a foreclosure?
The general waiting period is also three years, but FHA has an exception for borrowers who were current on the mortgage and other installment debts in the year before the short sale. Matthew can check whether your history fits.
What if my foreclosure was part of my bankruptcy?
Both clocks can matter. The foreclosure period generally runs from when title actually transferred, which may be later than the bankruptcy discharge.
Will a CAIVRS hit stop my FHA loan?
Generally yes, until it's resolved. Bringing the federal debt current or entering an approved repayment arrangement is usually the path forward.
Ask Matthew about your FHA home loan
Tell Matthew a little about the property and your plans. He'll follow up by phone or email — no obligation.
Prefer to start now? Start your pre-approval · Schedule a call · (512) 952-1125
Your information goes to Matthew only — it isn't sold to lead lists. Please don't include Social Security or account numbers.