FHA after bankruptcy, foreclosure or short sale.
The answer is rarely just “wait X years.” FHA distinguishes the type of event, the event date, payment history, re-established credit, extenuating circumstances and whether the file is automated or manually underwritten.
Chapter 7 bankruptcy
Under FHA's manual framework, a borrower is generally eligible when at least two years have elapsed since the bankruptcy discharge and the borrower has re-established good credit or chosen not to incur new credit obligations. FHA can permit an exception when the bankruptcy resulted from documented extenuating circumstances beyond the borrower's control and responsible financial management has since been demonstrated.
Chapter 13 bankruptcy
A Chapter 13 does not automatically disqualify the borrower. FHA's manual policy can permit eligibility when at least 12 months of the payout period have elapsed, required payments during that period have been made on time, and the borrower has the required written permission to enter the mortgage transaction.
Foreclosure / deed-in-lieu
A borrower is generally not eligible when a foreclosure or deed-in-lieu occurred within the prior three years from FHA case number assignment. The handbook provides an extenuating-circumstances path when the event resulted from circumstances beyond the borrower's control and the documentation standard is satisfied.
Short sale / pre-foreclosure sale
The general manual rule is a three-year period from transfer of title. However, FHA provides an important exception when all mortgage payments on the prior mortgage and installment debts were made within the month due for the 12 months preceding the short sale. FHA also has an extenuating-circumstances exception.
Official policy baseline
This guide is based on HUD/FHA Single Family Housing Policy Handbook 4000.1. HUD identifies Handbook 4000.1 as its consolidated, comprehensive source of FHA Single Family policy. The current handbook update was published August 12, 2026. Always verify current Handbook policy and applicable Mortgagee Letters at the time of the transaction.