Conventional loans · Fannie Mae B3-5.3-07Waiting periods after bankruptcy, foreclosure or a short sale
Fannie Mae sets a waiting period between a significant derogatory credit event and a new loan, counted from the completion, discharge or dismissal date. Chapter 7 or Chapter 11 bankruptcy: four years, or two with documented extenuating circumstances. Chapter 13: two years from discharge (no exceptions) or four years from dismissal (two with extenuating circumstances). More than one bankruptcy filing in the past seven years: five years from the most recent discharge or dismissal, or three with extenuating circumstances – one bankruptcy each for two co-borrowers does not count as multiple. Foreclosure: seven years, or three with extenuating circumstances; between three and seven years the buyer may only purchase a principal residence (or do a limited cash-out refinance) at no more than 90% loan-to-value. Short sale, deed-in-lieu or a charged-off mortgage: four years, or two with extenuating circumstances. If the mortgage was discharged in a bankruptcy and the lender documents it, the bankruptcy period can apply instead of the foreclosure period. After the wait, the borrower must also have re-established credit, and debts not discharged must be paid or on an established repayment plan.
Waiting periods (with extenuating circumstances in brackets)
Chapter 7 or 11
4 years (2)
From the discharge or dismissal date.
Chapter 13
2 years from discharge
No exceptions; 4 years from dismissal (2 with extenuating circumstances).
Multiple bankruptcies
5 years (3)
More than one filing in 7 years, measured from the most recent discharge or dismissal.
Foreclosure
7 years (3)
From 3 to 7 years: principal residence purchase only, max 90% LTV.
Short sale, deed-in-lieu, charge-off
4 years (2)
From the completion date reported on the credit report or documents.
Details that change the answer
- The clock runs from completion, discharge or dismissal – not from the filing or the first missed payment.
- Foreclosure and bankruptcy on the same mortgage: the bankruptcy period applies only if the lender documents that the mortgage was discharged; otherwise the longer one.
- Short sales and deeds-in-lieu are not always reported consistently; the lender may ask for documents showing the completion date.
- Timeshares are installment loans and are not subject to these waiting periods.
- FHA, VA and USDA have their own, often shorter, waiting periods.
What the TC can do
- If a buyer mentions a past bankruptcy or short sale, send them to the lender before writing an offer.
- Keep discharge papers and court documents out of email – the buyer uploads them for the lender.
- Note the exact completion or discharge date the lender uses; a few weeks can decide eligibility.
Questions buyers ask
How long after Chapter 7 bankruptcy can I get a conventional loan?
Four years from the discharge or dismissal date, or two years with documented extenuating circumstances (Fannie Mae Selling Guide B3-5.3-07).
How long after a foreclosure can I buy a house with a conventional loan?
Seven years from the foreclosure's completion date, or three years with extenuating circumstances – and then only a principal residence at up to 90% loan-to-value until seven years pass.
How long after a short sale can I get a Fannie Mae loan?
Four years from the completion date, or two years with documented extenuating circumstances.
Related guides
When the lender asks for discharge papers, request them from the buyer in ClosingCode with a secure upload link in English or Spanish – not as an email attachment.
Start free trialSource: Fannie Mae Selling Guide B3-5.3-07, Significant Derogatory Credit Events — Waiting Periods and Re-establishing Credit (08/07/2019), selling-guide.fanniemae.com, read October 25, 2026.
General information about Fannie Mae conventional loans, not legal, credit or financial advice. FHA, VA and USDA have different waiting periods, and the lender makes the final decision. ClosingCode is software; it is not a lender or law firm. This guide is not a substitute for the advice or services of an attorney.