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Sometimes no matter how hard you try, you just can’t catch a break. You lose your job, you have a medical emergency, or your business fails. Before you know it, you are forced to file for bankruptcy. Buying a home after bankruptcy can then seem out of reach.
But now you’ve pulled yourself back from the brink and you’re back on your feet. You’re thinking of buying a home again. Can you buy again after bankruptcy?
The answer is often yes.
Each of the major loan types (VA loans, USDA loans, conventional, and FHA) has clear guidelines regarding when you can buy a house again after bankruptcy.
Check your home buying eligibility. Start here (Nov 8th, 2026)
Waiting periods for buying a home after bankruptcy
|
Loan Type |
Waiting period from discharge: Standard |
Circumstances out of borrower’s control |
|
FHA: Ch 7 |
2 years |
1 year |
|
Conventional: Ch 7 or 11 |
4 years |
2 years |
|
Conventional: Ch 13 |
2 years (or 4 years from dismissal) |
2 years (from dismissal) |
|
VA: Ch 7 |
2 years |
Between 1 and 2 years |
|
USDA: Ch 7 |
3 years |
Less than 3 years with a credit exception |
Look at FHA first to buy again after bankruptcy
The FHA loan program normally states at least two years need to have passed after a Chapter 7 bankruptcy discharge to qualify for a new loan. For a Chapter 13 bankruptcy, you may qualify once 12 months of plan payments have passed. Your payments must be on time, and the bankruptcy court must give written permission.
Conventional loans after bankruptcy
Conventional loans require the longest waiting period of any loan type after a Chapter 7 or Chapter 11 bankruptcy. But, for those with a good re-established credit score and a good down payment, it’s worth looking into a conventional loan.
If you filed a Chapter 7 or Chapter 11 bankruptcy, you must wait four years from the discharge or dismissal date of the bankruptcy. But, a two-year waiting period may be allowed if the bankruptcy was due to circumstances beyond your control, such as a medical emergency.
Related: Buying Again after Foreclosure
For Chapter 13 bankruptcies, the waiting period is two years from the discharge date or four years from the dismissal date. But, a two-year waiting period after the dismissal date may be permitted if the causes of your bankruptcy were beyond your control.
VA & USDA loans
You should look into a Department of Veterans Affairs (VA) loan if you have current or former military experience. For VA loans, the lender will analyze the circumstances around the bankruptcy to determine whether you are a good candidate to buy again.
The waiting period is typically two years from the discharge of the bankruptcy. In fact, the VA handbook states that a Chapter 7 bankruptcy discharged more than two years before closing may be disregarded from the credit analysis.
For bankruptcies discharged between one and two years ago, chances are slim that you will be approved. But it is possible, given you have obtained credit accounts and paid them on time, and the bankruptcy was caused by circumstances out of your control, such as unemployment, prolonged strikes, or medical bills not covered by insurance.
With a Chapter 13 bankruptcy, the lender may view your file favorably after 12 months of on-time plan payments. The trustee or bankruptcy judge must also approve the new credit.
United States Department of Agriculture (USDA) loans allow those who are looking to buy a home in more rural areas to do so with zero down payment. USDA loans generally require a three-year waiting period from a Chapter 7 discharge. However, a shorter wait may be possible. Even within three years, the file can get an Accept from USDA’s automated underwriting system (GUS). Otherwise, the lender can make a credit exception if the bankruptcy came from temporary circumstances beyond your control, such as illness or job loss. For a Chapter 13 bankruptcy, you may qualify after 12 months of on-time plan payments, with written permission from the court or trustee.
As with all the loan programs, the USDA loan requires that you show a re-established credit history and have had near-perfect history since the bankruptcy.
Buying a home after bankruptcy is possible
Though not always an easy road, many borrowers can buy again after bankruptcy once the waiting period ends. Lenders recognize that things happen in life, but that people can rebound, learn lessons, and be great borrowers again.
Check your home buying eligibility. Start here (Nov 8th, 2026)
