Can I get an FHA loan 2 years after Chapter 7?

Yes, per HUD Handbook 4000.1 Section II.A.5.a.iii(B), an FHA loan is eligible 2 years after Chapter 7 discharge if credit has been re-established and the borrower has demonstrated responsible credit management. Some lenders overlay to 3 years post-discharge regardless of HUD policy.

What is the conventional waiting period after Chapter 7?

Fannie Mae requires 4 years from the discharge date of a Chapter 7 (Selling Guide B3-5.3-07). With documented extenuating circumstances such as job loss or major medical event, the waiting period may shorten to 2 years. Freddie Mac applies the same 4-year standard.

Does Chapter 13 wait differently from Chapter 7?

Yes. FHA permits a Chapter 13 borrower to apply 1 year into the repayment plan with on-time payments and trustee approval (4000.1 II.A.5.a.iii(C)). Conventional requires 2 years from discharge date or 4 years from dismissal date. The repayment plan typically lasts 3 to 5 years.

FHA vs Conventional After Bankruptcy

FHA seasoning rules are materially shorter than conventional. A Chapter 7 borrower can buy with FHA at 2 years post-discharge; conventional typically requires 4. Chapter 13 has its own rules favouring FHA further.

Verdict

FHA, almost always, until conventional seasoning periods are met. After year 4 from a Chapter 7 discharge, run the standard FICO/LTV comparison.

Seasoning matrix

Bankruptcy event	FHA	Conventional (Fannie/Freddie)
Chapter 7 discharge	2 years	4 years (2 with extenuating circs)
Chapter 13 discharge	1 year into plan with trustee approval	2 years from discharge
Chapter 13 dismissal	2 years from dismissal	4 years from dismissal
Multiple BK filings in 7 years	5 years from most recent discharge	5 years from most recent discharge

Credit re-establishment standards

Both programmes require credit re-establishment after the waiting period. Typical lender expectations:

3 to 5 active tradelines (credit cards, auto loan, secured card) for at least 12 months
No late payments since discharge
FICO rebuild to 580 minimum for FHA, 620 for conventional
Written explanation of the bankruptcy cause and remedy
For extenuating-circumstance shortened waits: documentation of job loss, divorce, major medical event, or natural disaster

Chapter 13 specifics

FHA permits purchase 1 year into a Chapter 13 plan with the trustee's written approval, all required payments made on time for 12 months, and the lender's underwriting confirmation that the borrower can take on the new mortgage payment. Conventional generally requires the Chapter 13 to be fully discharged with 2-year seasoning, which means waiting 5 to 7 years from the original filing.

Extenuating circumstances

Both Fannie and FHA permit waiting-period reductions when bankruptcy was driven by an extenuating event outside the borrower's control. Documentation typically includes a letter of explanation, supporting third-party records (employer termination notice, hospital bills, divorce decree, FEMA disaster declaration), and proof of subsequent credit recovery. With extenuating circumstances, Fannie Chapter 7 may shorten from 4 years to 2 years.

Rate disclaimer

Lender overlays often extend the published seasoning periods by 1 to 2 years. Talk to multiple lenders to find one without an overlay. Consult a licensed loan officer or HUD-approved housing counsellor.

Sources

HUD Handbook 4000.1 Section II.A.5.a.iii (Bankruptcy): HUD 4000.1
Fannie Mae Selling Guide B3-5.3-07 (Significant Derogatory Credit): selling-guide.fanniemae.com
Freddie Mac Seller Guide 5202.5 (Significant Derogatory Credit): guide.freddiemac.com
CFPB on rebuilding after bankruptcy: consumerfinance.gov

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