Credit · 9 min read
Getting a Mortgage After Bankruptcy or Foreclosure in California (2026)
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After a Chapter 7 bankruptcy, conventional loans require a 4-year wait (2 with documented extenuating circumstances), FHA and VA just 2 years. After a foreclosure, conventional is 7 years, FHA and VA 3 years. Non-QM loans can approve you as little as 1 day after the event with a larger down payment.
A bankruptcy or foreclosure isn’t the end of homeownership — it’s a waiting period. And the wait is shorter than most people assume, especially with government-backed and non-QM options. Here are the exact timelines for California buyers in 2026, measured from the discharge or completion date.
Chapter 7 bankruptcy waiting periods
Conventional: 4 years from discharge, or 2 years with documented extenuating circumstances (a one-time event beyond your control). FHA and VA: 2 years. USDA: 3 years. The clock starts at discharge, not filing — so an old bankruptcy may already be behind you.
Chapter 13 bankruptcy
Chapter 13 is treated more favorably because you repaid creditors. FHA allows financing after 1 year of on-time plan payments with court approval. Conventional requires 2 years from discharge or 4 from dismissal. VA generally mirrors the 12-month-into-the-plan approach with trustee approval.
Foreclosure and short sale
Foreclosure carries the longest conventional wait: 7 years (3 with extenuating circumstances plus loan restrictions). FHA and VA: 3 years. A short sale or deed-in-lieu is treated more gently — often 4 years conventional, and FHA/VA around 3 years. Rebuilding your credit during the wait matters as much as the calendar; see our credit guide.
The non-QM shortcut
Don’t want to wait years? Non-QM lenders offer “recent credit event” programs that can approve you as little as one day out of bankruptcy or foreclosure — in exchange for a larger down payment (often 20–30%) and a higher rate. Many California buyers use a non-QM loan now, rebuild, then refinance into conventional once the waiting period passes.
Frequently asked questions
How long after Chapter 7 bankruptcy can I buy a house in California?
FHA and VA loans allow financing 2 years after discharge; conventional requires 4 years (or 2 with documented extenuating circumstances). Non-QM options can approve you sooner with a larger down payment.
How long after a foreclosure before I can get a mortgage?
Conventional loans require 7 years (3 with extenuating circumstances and restrictions), while FHA and VA allow financing 3 years after a foreclosure. Non-QM programs can be much shorter.
Can I get a mortgage one year after bankruptcy?
Sometimes. Chapter 13 allows FHA financing after 12 months of on-time payments with court approval, and non-QM “recent credit event” loans can approve you even sooner with a larger down payment.
What credit score do I need after a bankruptcy?
There’s no single number, but rebuilding to the mid-600s or higher during the waiting period substantially improves your options and rate. Consistent on-time payments and low balances are what lenders look for.
Related reading
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