How long after bankruptcy for fha loan?

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When it comes to obtaining an FHA loan after bankruptcy, many individuals wonder how long they must wait before becoming eligible. Bankruptcy can have a significant impact on a person’s credit history and financial standing, making it challenging to secure a loan. However, the Federal Housing Administration (FHA) provides opportunities for individuals who have gone through bankruptcy to obtain a home loan. In this article, we will explore the timeline for qualifying for an FHA loan after bankruptcy and the requirements that need to be met.

Qualifying for an FHA Loan After Bankruptcy

Chapter 7 Bankruptcy: Chapter 7 bankruptcy is the most common type of bankruptcy filing. It involves the liquidation of assets to pay off debts. To qualify for an FHA loan after Chapter 7 bankruptcy, individuals typically need to wait at least two years from the discharge date. However, there are exceptions to this waiting period. If the bankruptcy was due to circumstances beyond the borrower’s control, such as a job loss or medical emergency, they may be eligible for an FHA loan after only one year.

Chapter 13 Bankruptcy: Chapter 13 bankruptcy involves a repayment plan where individuals make regular payments to creditors over a period of three to five years. To qualify for an FHA loan after Chapter 13 bankruptcy, individuals usually need to wait at least one year from the start of the repayment plan. They must also have made all payments on time and received permission from the bankruptcy court to take on new debt.

Rebuilding Credit

While waiting for the specified time period to pass, it is essential for individuals to focus on rebuilding their credit. Rebuilding credit after bankruptcy is crucial to improve the chances of qualifying for an FHA loan. Here are some steps individuals can take to rebuild their credit:

1. Paying Bills on Time: Making timely payments for all bills, including rent, utilities, and credit cards, can help rebuild credit over time.

2. Secured Credit Cards: Obtaining a secured credit card can be an effective way to rebuild credit. Secured credit cards require a cash deposit that serves as collateral. By using the card responsibly and making regular payments, individuals can demonstrate their creditworthiness.

3. Monitoring Credit Reports: Regularly monitoring credit reports can help individuals identify any errors or discrepancies that may be negatively impacting their credit score. Disputing and correcting these errors can improve creditworthiness.


Qualifying for an FHA loan after bankruptcy is possible, but it requires patience and careful financial planning. The waiting period for an FHA loan after bankruptcy varies depending on the type of bankruptcy filed. Individuals who have gone through Chapter 7 bankruptcy typically need to wait at least two years, while those who have filed Chapter 13 bankruptcy may be eligible after one year. It is crucial to focus on rebuilding credit during this waiting period to improve the chances of loan approval. By following responsible financial practices and taking steps to rebuild credit, individuals can work towards their goal of homeownership.