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mortgage after bankruptcy wait times

Getting a Mortgage After a Bankruptcy, Foreclosure, or Short Sale: How Long Will You Have to Wait?

“How long do I have to wait to get a home mortgage loan after a bankruptcy/foreclosure/short sale?”


Working in the mortgage business we receive questions like this a lot; even more so now that short sales (also known as “pre-foreclosure sales”) and foreclosures have been on the rise in recent years.

With programs evolving over time Fannie Mae, Freddie Mac, VA, and HUD have defined wait times for their respective programs. But issues can arise in that these wait times are combined with other criteria that the client must meet. As a result, the team at Blue Water Mortgage has attached the chart below that we created to help a buyer understand the different wait times they can expect when trying to secure a home mortgage after a bankruptcy, foreclosure or short sale.


mortgage after bankruptcy wait time table

Keys to getting financing after one of these events:


  • Waiting period has been met.
  • Customer has clean and re-established credit since the event occurred.
  • Customer receives an automated underwriting approval through the appropriate program’s underwriting engine.

Other helpful tips to secure financing


FHA Back To Work: HUD (the governing body of FHA loans) has recently come out with a program for people that do not meet the specific waiting periods above. Back to Work allows a buyer more leeway due to extenuating circumstances due to an “Economic Event”

An “Economic Event” is when a borrower has experienced an occurrence beyond their control that resulted in a loss of income, loss of employment, or a combination of both

This is the only program currently on the market that allows a client to waive the waiting period, but has very strict qualifications. Here they are:

  • The “Economic Event” lasted at least 6 months; and;
  • The “Economic Event” resulted in a 20% or more reduction in the borrower’s household income.
  • Documented evidence that the delinquencies were due to the “Economic Event” must be provided.
  • Borrower must have reestablished a “Satisfactory Credit” history for at least 12 months.
  • Borrower must have fully recovered from the “Economic Event.”

Patience is most certainly a virtue when trying to secure a home mortgage loan – no matter if you’re recovering from a bankruptcy, foreclosure or short sale. Not only is it important to understand the average wait times, but also it is equally as imperative to learn what can be done in the meantime. For more information on how to qualify for a home mortgage after a bankruptcy, foreclosure or short sale, contact us today!




Roger Odoardi

Roger is an owner and licensed Loan Officer at Blue Water Mortgage. He graduated from the University of New Hampshire’s Whittemore School of Business and has been a leader in the mortgage industry for over 20 years. Roger has personally originated over 2500 residential loans and is considered to be in the top 1% of NH Loan Officers by leading national lender United Wholesale Mortgage.