Complete waiting period table
| Loan Type | After Ch. 7 Discharge | After Ch. 13 Discharge | During Ch. 13 Plan | Min. Down |
|---|---|---|---|---|
| FHA | 2 years | No additional wait | 1 year on-time payments | 3.5% |
| VA | 2 years | No additional wait | 1 year on-time payments | 0% |
| USDA | 3 years | No additional wait | 1 year on-time payments | 0% |
| Conventional | 4 years | 2 years | Not allowed | 3% |
| Conventional (extenuating) | 2 years | 2 years | Not allowed | 10% |
When the clock starts
Chapter 7
The waiting period starts from the discharge date, not the filing date. Chapter 7 takes 3-4 months from filing to discharge. Filed January 2024, discharged April 2024 -- your 2-year FHA clock expires April 2026.
Chapter 13
For FHA/VA during plan: clock starts from first plan payment date. For conventional: from Chapter 13 discharge date (after completing the 3-5 year plan).
Dismissed Chapter 13: If your case was dismissed (not discharged), FHA/VA treat it like Chapter 7 -- 2-year wait from dismissal. Conventional requires 4 years from dismissal date.
Extenuating circumstances exception
Fannie Mae and Freddie Mac offer a reduced 2-year wait after Chapter 7 with documented extenuating circumstances:
- Nonrecurring events beyond your control
- Sudden, significant, prolonged income reduction
- OR catastrophic increase in financial obligations
Examples: employer closure, serious medical emergency, death of wage-earning spouse, divorce. Requires detailed letter with supporting documentation and minimum 10% down payment.
What to do during the waiting period
- Month 1-6: Open secured credit card and credit builder loan. Begin saving.
- Month 6-12: Verify discharged debts show $0. Dispute errors.
- Month 12-18: Apply for unsecured card. Continue saving.
- Month 18-24: If 580+, talk to FHA lenders for pre-qualification.
- Month 24: (FHA/VA eligible) Get formal pre-approval. Begin house hunting.
- Month 24-48: (Targeting conventional) Continue building credit and saving for 20% down.
The waiting period is not wasted time -- it is preparation time. Borrowers who actively rebuild credit and save during the waiting period enter the mortgage process in the strongest possible position.