FHA home loans explained for first-time buyers
FHA after credit setbacks
The friendly answer
FHA allows borrowers with past credit problems to qualify after waiting periods set in HUD's handbook. A Chapter 7 bankruptcy generally requires two years from discharge, and a foreclosure generally three years, with re-established good credit. Shorter periods can apply for documented extenuating circumstances.
Last reviewed against the primary sources listed below.
Rebuild while you wait
- Keep all accounts current.
- Check credit reports for errors.
- Save for closing costs and reserves.
First-time buyers often ask
How long after bankruptcy can I get an FHA loan?
Generally two years after a Chapter 7 discharge, per HUD's handbook.
Can I get an FHA loan after foreclosure?
Generally after three years, with exceptions for extenuating circumstances.