Guide
How Long After a Foreclosure Can You Get a Mortgage Again?
After a foreclosure, you can usually get an FHA loan after 3 years, a VA loan after about 2 years and a USDA loan after about 3 years. Fannie Mae requires 7 years, or 3 years with documented extenuating circumstances. Short sales and deeds-in-lieu often have shorter waits, and you must also rebuild your credit.
Many people who lost a home to foreclosure later want to buy again, sometimes a foreclosure themselves. Lenders are allowed to approve them, but only after a waiting period that depends on the loan type and on how the old loan ended. The clock starts on a specific date, and the lender will also check that your credit has recovered. Planning around these dates can save you from an early denial. The full list of REO financing guides is on the page about financing a bank-owned home.
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How Long Are the Waiting Periods by Loan Type?
The waiting periods by loan type range from about 2 years for VA loans to 7 years for conventional loans backed by Fannie Mae, with shorter periods after a short sale.
| Event | FHA | Fannie Mae conventional | VA | USDA |
|---|---|---|---|---|
| Foreclosure | 3 years | 7 years, or 3 with extenuating circumstances | About 2 years | About 3 years |
| Deed-in-lieu | 3 years | 4 years, or 2 with extenuating circumstances | About 2 years | About 3 years |
| Short sale | 3 years | 4 years, or 2 with extenuating circumstances | Often less if paid on time | About 3 years |
| Chapter 7 bankruptcy | 2 years | 4 years, or 2 with extenuating circumstances | About 2 years | About 3 years |
The FHA rules come from HUD’s Handbook 4000.1, and the conventional rules come from Fannie Mae’s waiting period guide. The VA and USDA figures are the periods lenders generally apply under those agencies’ handbooks, and lenders can add stricter rules.
What Are FHA’s Rules After a Foreclosure?
FHA’s rules say you are generally not eligible for a new FHA loan if you had a foreclosure or deed-in-lieu in the 3 years before the lender ordered the FHA case number.
The 3 years start on the date of the deed-in-lieu or the date you transferred the home to the foreclosing lender. A lender can make an exception for documented events beyond your control, such as a serious illness or the death of a wage earner, if you have rebuilt good credit. After a short sale, the lender must document 3 years since the sale, or the loan must be manually underwritten. An FHA loan is often the fastest route back, as explained in FHA loans for foreclosures and HUD homes.
What Are Fannie Mae’s Rules After a Foreclosure?
Fannie Mae’s rules require 7 years after a foreclosure, measured from the completion date, or 3 years if you can document extenuating circumstances. That makes conventional loans the slowest route back for most borrowers.
Between 3 and 7 years, extra limits apply. The loan cannot exceed 90% of the home’s value, and it can only be used to buy a main residence or for a limited cash-out refinance. Second homes, rentals and cash-out refinances must wait the full 7 years. You also need a traditional credit history and an acceptable automated underwriting result.
How Do You Rebuild Credit for a New Mortgage?
You rebuild credit for a new mortgage by paying every bill on time, keeping card balances low and adding a few accounts that report to the credit bureaus.
Lenders look for a clean recent history, usually at least 12 to 24 months with no late payments. Save for a larger down payment if you can, since it lowers the lender’s risk. A HUD-approved housing counselor can review your credit for free and help you plan the timing. When you are ready, owner-occupant programs like owner-occupant First Look periods can give you a head start on government-owned homes.
Example
The following is a fictional example. Derek’s home was foreclosed in March 2023 after a layoff. He finds a new job, pays everything on time and saves 5% for a down payment.
In April 2026, three years after the foreclosure, his lender orders an FHA case number and approves him. A conventional loan would have required waiting until 2030 unless he could document extenuating circumstances.
FAQ
Can You Get an FHA Loan 2 Years After Foreclosure?
Sometimes. FHA lets lenders make an exception to the 3-year rule if the foreclosure was caused by documented events beyond your control, such as a serious illness or the death of a wage earner, and you have rebuilt good credit since.
Does a Short Sale Have a Shorter Waiting Period than a Foreclosure?
For conventional loans, yes. Fannie Mae requires 4 years after a short sale or deed-in-lieu, compared with 7 years after a foreclosure. FHA uses 3 years for both.
When Does the Waiting Period Start?
For FHA, it starts on the date the home was transferred to the foreclosing lender, or the date of the deed-in-lieu or short sale. For Fannie Mae, it starts on the completion date of the foreclosure on your credit report.
Is Divorce an Extenuating Circumstance for FHA?
Generally not. FHA says divorce alone does not count, but a lender may make an exception if your mortgage was current when you divorced, your ex-spouse got the home and the loan was later foreclosed.
Sources
- HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook (Update 18). U.S. Department of Housing and Urban Development. https://www.hud.gov/sites/default/files/Housing/documents/40001-hsgh-Update-18.pdf
- B3-5.3-07, Significant Derogatory Credit Events: Waiting Periods and Re-establishing Credit. Fannie Mae Selling Guide. https://selling-guide.fanniemae.com/sel/b3-5.3-07/significant-derogatory-credit-events-waiting-periods-and-re-establishing-credit
This page explains general loan rules and is not financial advice. Lenders set their own requirements, so confirm the rates, fees and terms with a lender before you apply.