How long after foreclosure can I get an FHA loan?

Per HUD Handbook 4000.1 Section II.A.5.a.iii(D), FHA permits a new loan 3 years after the foreclosure completion date, with credit re-establishment and no late payments since. Extenuating circumstances such as documented job loss or medical event may reduce the wait.

What is the conventional waiting period after foreclosure?

Fannie Mae standard waiting period after foreclosure is 7 years per Selling Guide B3-5.3-07. With extenuating circumstances the period reduces to 3 years but the maximum LTV is capped at 90 percent and the loan must be for a primary residence. Freddie Mac aligns with the same 7-year standard.

Is a deed-in-lieu treated the same as foreclosure?

FHA treats deed-in-lieu the same as foreclosure (3 years). Fannie Mae treats deed-in-lieu and short sale at 4 years from completion (vs 7 for full foreclosure) per Selling Guide B3-5.3-07. Freddie Mac uses similar 4-year seasoning for deed-in-lieu and short sale.

FHA vs Conventional After Foreclosure

FHA permits purchase 3 years after a foreclosure completion. Fannie Mae and Freddie Mac require 7 years. For deed-in-lieu and short sale, both programmes are shorter; FHA still leads at 3 years vs 4 conventional.

Verdict

FHA wins for borrowers 3 to 6 years past a foreclosure completion. Conventional becomes an option at year 7 (or year 4 for deed-in-lieu / short sale).

Seasoning matrix

Event	FHA	Conventional
Foreclosure completion	3 years (standard)	7 years (3 with extenuating, 90% LTV cap)
Deed-in-lieu	3 years	4 years (2 with extenuating)
Short sale (FHA: pre-foreclosure)	3 years	4 years
Mortgage charge-off	3 years	7 years (treated as foreclosure equivalent)
Foreclosure on a previous FHA loan	3 years AND must clear CAIVRS	N/A on Fannie/Freddie

CAIVRS check (FHA only)

If your prior foreclosure was on a federally insured mortgage (FHA, VA, USDA), you appear on CAIVRS (Credit Alert Verification Reporting System) for 3 years from claim payment date. CAIVRS clearance is required for any new FHA loan. Lenders pull CAIVRS during application; an active hit means automatic ineligibility until cleared.

Extenuating circumstances

FHA defines extenuating circumstances as serious illness or death of a wage earner. Loss of employment alone is generally not extenuating per HUD 4000.1. Fannie Mae defines them more broadly to include documented job loss, but the bar for proof is high. Acceptable documentation includes layoff letter, medical bills, divorce decree, or FEMA disaster declaration affecting the property.

Credit re-establishment expectations

At least 3 active tradelines for 12+ months post-event, all current
FICO at least 580 for FHA, 620 for conventional (most lenders overlay to 640+)
No 30-day lates in the 12 months before application
Written letter of explanation describing the event and remedy
For shortened waits: third-party documentation of the extenuating event

Rate disclaimer

Many lenders apply overlays that extend the published seasoning periods by 1 to 2 years. Shop multiple lenders. Consult a licensed loan officer.

Sources

HUD Handbook 4000.1 Section II.A.5.a.iii (Foreclosure / DIL / Short Sale): HUD 4000.1
Fannie Mae Selling Guide B3-5.3-07: selling-guide.fanniemae.com
Freddie Mac Seller Guide 5202.5: guide.freddiemac.com
HUD CAIVRS info: hud.gov/caivrs