Buying in San Diego after a bankruptcy or foreclosure: the waiting periods
Quick answer: The clock starts at the discharge, dismissal, or completion date, not the day the item falls off your credit report. Conventional (Fannie Mae B3-5.3-07): Chapter 7 is 4 years from discharge or dismissal (2 with documented extenuating circumstances). Chapter 13 is 2 years from discharge or 4 years from dismissal. Foreclosure is 7 years (3 with extenuating circumstances, then principal-residence purchase only at 90% max LTV until year 7). Short sale, deed-in-lieu, or mortgage charge-off is 4 years (2 with extenuating circumstances). FHA (HUD 4000.1): Chapter 7 is 2 years from discharge. Chapter 13 can work after 12 months of on-time plan payments with written permission from the bankruptcy court. Foreclosure is 3 years from the date title transferred. Waiting period met is not the same as approved. You still need rebuilt credit, income, and assets. Source: Fannie Mae B3-5.3-07.
I talk to San Diego buyers every month who assume a bankruptcy or foreclosure locks them out for 7 to 10 years. That is the credit reporting clock. The mortgage clock is usually shorter, and it depends on the program. The right move is to pull your exact dates first, then pick the program that opens soonest.
Conventional vs FHA waiting periods side by side
- Chapter 7: conventional 4 years from discharge or dismissal (2 with extenuating circumstances). FHA 2 years from discharge.
- Chapter 13: conventional 2 years from discharge or 4 years from dismissal. FHA can be eligible after 12 months of the payout period with all payments on time and written court permission.
- Foreclosure: conventional 7 years from completion (3 with extenuating circumstances, limited to buying a principal residence at 90% max LTV until year 7). FHA 3 years from the date title transferred.
- Short sale or deed-in-lieu: conventional 4 years (2 with extenuating circumstances). FHA generally 3 years from title transfer.
- More than one bankruptcy in 7 years: conventional 5 years from the most recent discharge or dismissal (3 with extenuating circumstances).
What gets checked after the clock runs
Fannie wants traditional credit re-established and a DU approval or the manual credit score minimum. FHA wants good credit since the event or no new debt. Late payments after the bankruptcy hurt more than the bankruptcy itself. If the mortgage was discharged in the bankruptcy and you can document it, the bankruptcy clock can apply instead of the longer foreclosure clock. VA has its own rules, so veterans should start at VA loan San Diego.
Compare programs on FHA vs conventional 3% down and FHA loan San Diego. Check your score on credit score to buy a house in San Diego.
When loan amount matters, the 2026 San Diego County 1-unit high-cost conforming limit is $1,104,000. Jumbo is generally above that. VA full entitlement is not capped the same way. See loan limits. Start at get pre-approved San Diego. Company NMLS 2394495. Amir Nurani NMLS 197458. Call (619) 366-9494.
Frequently asked questions
FHA can work 2 years after discharge. Conventional (Fannie Mae) is 4 years from discharge or dismissal, or 2 years with documented extenuating circumstances.
FHA allows it after 12 months of the payout period if every plan payment was on time and the bankruptcy court gives written permission. Conventional waits 2 years from discharge or 4 years from dismissal.
7 years from the completion date. With documented extenuating circumstances it can be 3 years, but until year 7 it is limited to buying a principal residence at 90% max LTV, or a limited cash-out refinance.
No. It starts at the discharge, dismissal, completion, or title transfer date. Credit reporting timelines are a separate clock.
Sources: Fannie Mae Selling Guide B3-5.3-07, Significant Derogatory Credit Events: Waiting Periods. HUD Handbook 4000.1 (rev. 01/10/2025), FHA Single Family Housing Policy Handbook. VA rules are reviewed on your file.
Not sure if your clock has run?
Send me your discharge or completion date and your price range. I will tell you which program opens first and what to clean up now.
Get Pre-Approved(619) 366-9494 · Amir Nurani · NMLS #197458