If you went through a bankruptcy, foreclosure or short sale, you can still own a home in Florida again, but how soon depends on the loan program. FHA, VA, conventional and USDA loans each set their own waiting periods, and they are not the same length or measured from the same date. This guide compares them, explains the exceptions and covers what to do while you wait.
The waiting periods below come from published program guidelines. Your lender may apply stricter rules, called overlays, so treat these as the starting point rather than a promise. If you are shopping for a first home, our guide to first-time home buyer programs in Florida is a good companion.
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Waiting Periods at a Glance
| Credit event | FHA | VA | Conventional (Fannie Mae) | USDA |
|---|---|---|---|---|
| Chapter 7 bankruptcy | Generally 2 years from discharge. 12 months or more may be considered with documented extenuating circumstances. | About 2 years from discharge. 1 to 2 years may be considered if credit is re-established and the cause was beyond your control. | 4 years from discharge or dismissal, or 2 years with documented extenuating circumstances. | Not treated as adverse credit after 36 months. Within 36 months, a documented exception may be needed. |
| Chapter 13 bankruptcy | At least 12 months of the plan paid on time, plus written court permission. | 1 year of payments as agreed, plus trustee or court permission. | 2 years from discharge, or 4 years from dismissal (2 with extenuating circumstances). | 12 months of on-time plan payments plus court or trustee permission. |
| Foreclosure | Generally 3 years from the date title transferred. An exception is possible for documented circumstances beyond your control, if good credit is re-established. | Generally 2 years. 1 year may be considered if credit is re-established and the cause was beyond your control. | 7 years from completion, or 3 years with documented extenuating circumstances and added limits. | Not treated as adverse credit after 36 months. Within 36 months, a documented exception may be needed. |
| Short sale or deed-in-lieu | Generally 3 years. A short sale has an exception if all mortgage and installment payments were on time for the 12 months before it. | No set waiting period, but late mortgage payments are weighed in the credit review. | 4 years from completion, or 2 years with documented extenuating circumstances. | Not treated as adverse credit after 36 months. Within 36 months, a documented exception may be needed. |
These summaries come from HUD’s FHA bankruptcy guidance, HUD’s foreclosure and deed-in-lieu guidance, HUD’s short sale guidance, the Fannie Mae Selling Guide, VA credit standards and the USDA Handbook (HB-1-3555, Chapter 10). Other conventional investors and individual lenders can differ. Programs can change, and these are general summaries, not a decision about your application.
How the Clock Starts
The same event can count differently depending on the loan. For a bankruptcy, the clock generally runs from the discharge date, or the dismissal date if the case was dismissed. For a foreclosure, FHA measures from the date title transferred out of your name, while Fannie Mae measures from the completion date of the foreclosure. For a short sale or deed-in-lieu, the clock runs from the date the property was transferred or the process was completed.
The end date also varies. FHA looks at the date the case number is assigned for the new loan, while Fannie Mae looks at the new loan’s disbursement date. That is why lenders ask for exact dates and documents, not estimates. A credit report does not always show them, so your lender may request the discharge order, the deed or title transfer document, or the Closing Disclosure from a short sale.
FHA Loans After a Credit Event
FHA loans are often the first option people explore after a credit event, because the waiting periods are shorter than conventional guidelines. HUD’s guidance generally calls for two years from a Chapter 7 discharge, with good credit re-established or no new credit obligations. A shorter period of at least 12 months may be acceptable when there are documented extenuating circumstances beyond your control and you have managed your finances responsibly. For Chapter 13, you generally must have made at least 12 months of plan payments on time and have written permission from the bankruptcy court.
For a foreclosure or deed-in-lieu, FHA generally calls for three years from the date title transferred. HUD says an exception may be possible when the foreclosure resulted from circumstances beyond your control, such as a serious illness or the death of a wage earner, and you have re-established good credit. HUD does not treat divorce as an extenuating circumstance by itself, although an exception may apply if your mortgage was current at the time of the divorce, your ex-spouse received the home and it was later foreclosed. Being unable to sell because of a job transfer or relocation does not qualify.
For a short sale, HUD generally calls for three years from the date title transferred. There is an exception when every payment on the prior mortgage, and on your installment debts, was made within the month due for the 12 months before the short sale. This follows HUD Handbook 4000.1, section II.A.5.a.iii(J). For the rest of the basics, see our guides to FHA loan requirements in Florida and FHA versus conventional loans.
VA Loans After a Credit Event
VA guidelines are often the most flexible for eligible veterans and service members. The VA credit standards describe a two-year waiting period after a foreclosure or Chapter 7 bankruptcy, with the possibility of one year if credit has been re-established and the event was beyond your control. For a Chapter 13 bankruptcy, VA looks for one year of payments made as agreed, along with the trustee’s permission. A short sale or deed-in-lieu has no set waiting period, though late mortgage payments leading up to it will be weighed in the credit review.
VA does not use a minimum credit score, but individual lenders can set their own. VA underwriting looks at the overall credit picture, including how long ago the event happened and whether your credit has been re-established since. See our guides to VA loan requirements in Florida and VA loan eligibility for more.
Conventional Loans After a Credit Event
Conventional loans have the longest published waiting periods. Fannie Mae’s Selling Guide lists four years after a Chapter 7 or 11 bankruptcy, two years after a discharged Chapter 13, four years after a dismissed Chapter 13, seven years after a foreclosure, and four years after a short sale or deed-in-lieu. Documented extenuating circumstances can shorten these to two years for a Chapter 7, 11 or dismissed Chapter 13, three years for a foreclosure and two years for a short sale or deed-in-lieu. There is no extenuating-circumstances reduction after a discharged Chapter 13.
A shorter foreclosure period comes with conditions. Fannie Mae limits the loan-to-value ratio to 90% or the program maximum if lower, and allows only a principal-residence purchase or a limited cash-out refinance. Second-home and investment purchases and cash-out refinances wait the full seven years. If you filed more than one bankruptcy in the past seven years, the waiting period is longer. Other investors, including Freddie Mac, and individual lenders can use different rules, so confirm with your lender.
USDA Loans After a Credit Event
USDA loans are limited to eligible rural areas and to income-qualified households, so they will not fit every Florida borrower. For credit events, USDA’s handbook treats a foreclosure, short sale or deed-in-lieu that happened 36 months or more before your application as not adverse. A Chapter 7 bankruptcy discharged or dismissed more than 36 months before is treated the same way. If the event is more recent, a documented credit exception may be needed. For Chapters 11, 12 and 13, USDA looks for 12 months of on-time plan payments plus court or trustee permission. Our guide to USDA loan eligibility in Florida explains the location and income basics.
What Counts as Extenuating Circumstances?
Extenuating circumstances are events outside your control that caused the credit problem, such as a serious illness or the death of a wage earner. Lenders usually want a written explanation and documents proving it, and they also look for responsible financial behavior since the event. Under FHA, for example, being unable to sell a home after a job transfer or relocation does not qualify. Each program defines this a little differently, so ask your lender how it applies to your situation before you assume you qualify for a shorter waiting period.
Rebuilding Credit While You Wait
The waiting period is only part of the story. Programs generally want to see that your credit has been re-established since the event, and a longer clean record helps even when you meet the minimum time. Pay every bill on time, keep credit card balances low, and avoid taking on new debt you do not need. Fannie Mae, for example, asks for traditional credit when re-establishing credit after a significant event. A HUD-approved housing counselor, often at low or no cost, can help you build a plan; find one through HUD’s housing counselor search.
Other Loan Options
Some non-QM lenders may consider borrowers sooner than agency guidelines allow, depending on the credit event, time elapsed, down payment/equity, credit profile and lender guidelines. Terms and availability vary. Mortgages Done Right can check current lender options for the specific scenario.
Refinancing After a Credit Event
Waiting periods can apply to refinances as well as purchases. Fannie Mae, for example, allows only a limited cash-out refinance during its shortened foreclosure period, and a standard cash-out refinance waits the full seven years. If you already own a home and want to lower your payment or tap equity, see our refinance options or ask about your scenario directly.
What to Gather Before You Apply
- Bankruptcy papers: the filing chapter, discharge or dismissal order, and for Chapter 13 the payment history and court or trustee permission letter.
- Foreclosure or short sale documents: the deed or title transfer document, the short sale Closing Disclosure and the lender’s approval letter where you have them.
- Your explanation: a written letter and supporting documents if you believe extenuating circumstances apply.
- Recent credit and income records: a current credit report, pay stubs or tax returns, and bank statements.
- Your housing history: where you have lived and how rent or mortgage payments have been made since the event.
Reviewing these early helps you set a realistic timeline. When you are ready, see our guide to mortgage pre-approvals in Florida.
Frequently Asked Questions About Mortgages After Bankruptcy, Foreclosure or Short Sale
Can I get a mortgage right after bankruptcy?
Usually not immediately. Most programs require a waiting period, and the length depends on the type of bankruptcy and the program. Some programs allow shorter periods with documented extenuating circumstances or, for Chapter 13, after a year of on-time plan payments with permission from the court or trustee. Check your dates with a lender.
Which loan has the shortest waiting period after a foreclosure?
Based on the published guidelines, VA generally has the shortest, at two years, with one year possible in some cases. FHA generally calls for three years, and USDA treats a foreclosure 36 months or older as not adverse. Fannie Mae conventional is seven years, or three with extenuating circumstances and added limits. You must also meet that program’s eligibility requirements.
Is a short sale better than a foreclosure for getting a new mortgage?
Often, yes. Several programs use a shorter waiting period after a short sale, for example four years versus seven for Fannie Mae, and VA has no set waiting period. FHA allows a short sale exception if every payment on the prior mortgage was on time for the 12 months before it. Your actual result depends on the lender and the rest of your credit.
Does divorce count as an extenuating circumstance?
Not by itself for FHA, according to HUD’s guidance. FHA has two separate exceptions. For a foreclosure, an exception may be possible if your mortgage was current at the time of the divorce, your ex-spouse received the property, and the mortgage was later foreclosed. Under the separate short sale rule, a similar exception may be possible if your mortgage was current at the time of the divorce, your ex-spouse received the property, and there was a subsequent short sale. Other programs define extenuating circumstances differently, so ask your lender.
Do the waiting periods start at filing or discharge?
For bankruptcy, the waiting period is generally measured from the discharge or dismissal date, not the filing date. A foreclosure or short sale is generally measured from the date title transferred or the process was completed. Programs differ slightly, so provide exact dates.
Can I refinance during the waiting period?
It depends on the program and the type of refinance. Waiting periods can apply to refinances, and cash-out refinances often face stricter timing. If you are in a Chapter 13 plan, you will generally also need court or trustee permission. Ask a lender about your scenario before you start.
Talk Through Your Timeline With Greg Hayden
Bring your discharge or sale dates, a recent credit report if you have one, and your target purchase or refinance. A quick review can show whether you may qualify now or what to work on first.
Waiting periods were checked against HUD FHA Resource Center guidance, HUD Handbook 4000.1, the Fannie Mae Selling Guide, VA credit standards and the USDA Handbook in October 2026 and can change. Lenders may require more than the program minimum, and eligibility depends on your full credit, income, assets and property. This article is for general education and is not legal advice, a rate quote, loan approval, financial advice or commitment to lend. Mortgages Done Right Inc. NMLS #1532755. Greg Hayden NMLS #332209.
