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Bankruptcy Seasoning

A bankruptcy isn't a life sentence on homeownership.

Chapter 7 and Chapter 13 each have their own seasoning clock — and it's shorter than most people assume. Here's exactly how long you need to wait, by program.

The short version

What you need to know

2 yrs

Ch. 7 — FHA & VA

From discharge date, with re-established credit.

1 yr

Ch. 13 — FHA & VA

Of satisfactory payout, plus Trustee written permission.

12-24 mo

Non-QM seasoning

Shorter waits available, with a reduced max LTV if recent.

12-23 mo

VA exception

Available only with documented extraordinary circumstances.

Who this applies to

Is this you?

Discharged Chapter 7

Your bankruptcy was fully discharged and you've been rebuilding credit since.

In a Chapter 13 plan

You're still making court-ordered payments and want to know when you can buy.

Need it sooner than 2 years

Non-QM or VA extraordinary-circumstance paths may get you there faster.

The fine print — plain English

FHA guidelines, from top to bottom

FHA has the shortest, most forgiving seasoning timelines of any major agency program.

Bankruptcy Seasoning · FHA Guidelines

Bankruptcy typeFHA wait time
Chapter 72 years from discharge date — must show re-established good credit since
Chapter 131 year of satisfactory payout, plus written permission from the Bankruptcy Trustee to take on new mortgage debt
Source: HUD 4000.1.
If FHA's rules don't fit

The Non-QM alternative

Non-QM programs are built specifically to shorten these waits — often with a down-payment tradeoff.

Bankruptcy Seasoning · Non-QM Guidelines

Bankruptcy typeTypical Non-QM rule
Chapter 7 or 1312–24 months from discharge/dismissal; if under 24 months, max LTV is reduced (often 75-80%)
"Fresh Start" programsSeasoning as short as 1 day out, but require 30%+ down and significantly higher rates
General guidelines across Non-QM investors — always confirmed against the specific investor's matrix before locking.
For veterans

The VA alternative

VA is highly forgiving on bankruptcy timelines, especially with documented extraordinary circumstances.

Bankruptcy Seasoning · VA Guidelines

Bankruptcy typeVA rule
Chapter 72 years (24 months) from discharge; can shorten to 12–23 months only with documented extraordinary circumstances (e.g., death of primary wage earner, natural disaster)
Chapter 13Eligible after 1 year (12 months) of clean, on-time plan payments, with written Bankruptcy Trustee approval and a manual underwrite
Source: VA Lender's Handbook. Ask me if you're a veteran or eligible spouse — VA is often the fastest path back after bankruptcy.
For everyday buyers

The Conventional path

Conventional loans carry the longest bankruptcy seasoning of the four programs — the tradeoff for lower long-term mortgage insurance costs.

Bankruptcy Seasoning · Conventional Guidelines

Bankruptcy typeConventional wait time
Chapter 74 years from the discharge date
Chapter 132 years from the discharge date (4 years if the case was dismissed instead of discharged)
Source: Fannie Mae / Freddie Mac Selling Guide.
For rural buyers

The USDA angle

USDA's 3-year bankruptcy wait sits between FHA/VA's 2 years and Conventional's 4 years.

Bankruptcy Seasoning · USDA Guidelines

Bankruptcy typeUSDA rule
Chapter 73 years from discharge/dismissal; case-by-case consideration between 12-36 months only with documented extenuating circumstances beyond your control
Chapter 13Eligible after 12 consecutive on-time plan payments, plus written permission from the bankruptcy trustee
Source: USDA HB-1-3555.
For NY first-time buyers

The SONYMA angle

SONYMA matches FHA's 2-year Chapter 7 wait, but caps manual-underwrite DTI tighter than most.

Bankruptcy Seasoning · SONYMA Guidelines

Bankruptcy typeSONYMA rule
Chapter 72 years minimum from discharge date, before the new loan's case number assignment
Under 2 yearsTriggers an AUS "Refer," requiring manual underwrite — DTI strictly capped at 43.00%
Source: SONYMA Seller's Guide.
For higher-balance buyers

The Jumbo angle

Jumbo's bankruptcy seasoning is the longest of any program — Non-QM is the fallback if you can't wait.

Bankruptcy Seasoning · Jumbo Guidelines

Bankruptcy typeJumbo rule
Chapter 7 or 134 to 7 years from discharge date to application date on standard prime Jumbo
NAF Portfolio (Non-QM) alternativeChapter 7 or 11 allowed after just 2 years from discharge — or 12 months with heavily documented extenuating circumstances
Source: Jumbo investor guidelines vary — always check the specific Jumbo matrix before locking.
For land buyers

The Land Loan angle

Land loans require a flat 3-year discharge wait, with no shortcut for extenuating circumstances.

Bankruptcy Seasoning · Land Loan Guidelines

Bankruptcy typeLand Loan rule
Chapter 7, 11, or 13Ineligible unless fully discharged at least 3 years prior to application — no case-by-case exceptions
Multiple bankruptciesTwo or more filings makes you ineligible unless you've established at least 2 years of clean, re-established credit
Source: NAF Vacant Land Loan Guidelines.
Good to know

Questions, answered

How long after Chapter 7 bankruptcy can I buy a home?+
With FHA or VA, typically 2 years from your discharge date, with re-established good credit. Non-QM programs may allow 12-24 months, and specialized "Fresh Start" products allow even sooner with a larger down payment.
Can I buy a home while still in a Chapter 13 repayment plan?+
Yes — after 1 year of satisfactory, on-time payments, with written permission from your Bankruptcy Trustee.
Are veterans treated differently for bankruptcy seasoning?+
VA allows the standard 2-year wait for Chapter 7, but can shorten it to 12-23 months with documented extraordinary circumstances like the death of a primary wage earner.
Areas served

Where I close these loans.

Licensed across New York State — with deep roots in the Capital Region and select NYC neighborhoods.

Don't see your town? Reach out — I lend statewide. Or see every Capital Region town.

Town-specific guides

See this topic for your town.

Local snapshot + the same program comparison, tailored to where you're buying.