Foreclosure or Bankruptcy - When Can You Buy a Home Again?

If you have had a foreclosure or bankruptcy in the past, you may be wondering when you can buy a home again.    The following information can give you an idea of the time lines that might apply to your situation.  We always recommend that you speak with a lender about your specific situation.  If you would like us to have a lender contact you, please complete the form below.  This information is based upon information provided by REALTOR Magazine a publication of the National Association of REALTORS.
 
If you have had a Foreclosure
  • For an FHA loan, you will generally have to wait at least three years.  An exception may be granted if the foreclosure was a result of serious illness or death of a wage earner and the borrower has reestablished good credit.
  • For a VA loan, you may qualify in two or more years following the foreclosure.  If the foreclosure was for a VA loan, the buyer must have paid the VA for its loss before qualifying for a new VA loan.
  • The majority of other loans given through banks are Fannie Mae and Freddie Mac loans.  You will typically have to wait seven years after a foreclosure for this type of loan.  However, an exception is sometimes granted after three years depending upon the circumstances that caused the foreclosure - such as job loss or death of a wage earner. 

If you have had a Chapter 7 or 11 Bankruptcy

  •  For an FHA loan, if you have had a Chapter 7 Bankruptcy you may be able to get a loan after two years after the discharge if you have reestablished good credit or have not incurred any new credit obligations.
  • For a VA loan, you may qualify in two or more years following the bankruptcy.
  • The majority of other loans given through banks are Fannie Mae and Freddie Mac loans.  You will typically have to wait four years after a bankruptcy for this type of loan.  However, an exception is sometimes granted after two years depending upon the circumstances that caused the bankruptcy - such as job loss or death of a wage earner.  

If you have had a Chapter 13 Bankruptcy

  •  For an FHA loan,  you may be able to get a loan after one year of making the required payments.
  • For a VA loan, you may qualify after making 12 months of payments to a court-appointed trustee and the trustee or the judge approves new credit. 
  • The majority of other loans given through banks are Fannie Mae and Freddie Mac loans.  You will typically have to wait two years from the discharge date or four years from the dismissal date.
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