Standard waiting periods depend on the loan type: after a foreclosure, 7 years for Fannie Mae, 84 months for a manually underwritten Freddie Mac loan and 3 years for FHA; after a short sale, 4 years, 48 months and 3 years; after a Chapter 7 discharge, 4 years, 48 months and 2 years. Documented extenuating circumstances shorten most of these, and the Freddie Mac figures apply to manual underwriting only; for a Loan Product Advisor Accept, the Guide states that LPA has assessed the borrower's credit. VA lets lenders disregard a foreclosure or Chapter 7 discharge more than 2 years before closing and sets no fixed period after a short sale. USDA requires a credit exception for any of the three within 36 months before submission unless GUS returns an Accept.
Fannie Mae (conventional)
- Chapter 7 or Chapter 11 bankruptcy: 4 years from discharge or dismissal. Preforeclosure (short) sale or deed-in-lieu: 4 years from completion. Each drops to 2 years with documented extenuating circumstances. Fannie Mae B3-5.3-07
- Foreclosure: seven years from completion, or three years with documented extenuating circumstances; between years three and seven, maximum LTV is the lesser of 90% or the Eligibility Matrix limit, and only principal-residence purchases or limited cash-out refinances are permitted. Fannie Mae B3-5.3-07
- Manual underwriting measures the period to the new loan's disbursement date; DU uses the credit report date. Fannie Mae B3-5.3-07 Fannie Mae B3-5.3-09
Freddie Mac (conventional)
- The recovery periods below are in the Guide's manual-underwriting chapter, which applies to every mortgage without an LPA Accept; for Accept Mortgages, LPA has assessed the borrower's credit reputation and found it acceptable. Freddie Mac 5102.2(b) Freddie Mac 5202.1 Freddie Mac 5201.1(b)
- Financial mismanagement: foreclosure 84 months, short sale 48 months, Chapter 7 or 11 bankruptcy 48 months. Extenuating circumstances: 36, 24 and 24 months. Freddie Mac 5202.1(d)
- After a short sale within seven years, or a foreclosure using the 36-month extenuating-circumstances period, the loan must be a principal-residence purchase at no more than 90% LTV (or the lower transaction maximum) or a "no cash-out" refinance. Freddie Mac 5202.1(d)
FHA
- Chapter 7: two years from discharge to case number assignment; not less than 12 months may be acceptable with extenuating circumstances beyond the borrower's control and a documented ability to manage finances since. FHA 4000.1 II.A.5.a.iii(H)
- Foreclosure, deed-in-lieu or short sale: generally three years before case number assignment; the lender may grant an exception for documented extenuating circumstances beyond the borrower's control (divorce does not qualify) if good credit has been reestablished. FHA 4000.1 II.A.5.a.iii(I) FHA 4000.1 II.A.5.a.iii(J)
- Short sale: the borrower is eligible within the three years if all mortgage and installment payments were made within the month due in the 12 months before the sale. FHA 4000.1 II.A.5.a.iii(J)
- A TOTAL Accept inside these periods must be downgraded to manual underwriting. FHA 4000.1 II.A.4.a.v
VA
- A Chapter 7 discharge or foreclosure more than 2 years before closing may be disregarded; at 1 to 2 years, the borrower is probably not a satisfactory credit risk unless new credit has been repaid satisfactorily and the event had verified causes beyond their control. VA Pamphlet 26-7, Ch. 4 Topic 7
- Within 12 months of a bankruptcy discharge, finding the borrower a satisfactory credit risk will generally not be possible. VA Pamphlet 26-7, Ch. 4 Topic 7
- A foreclosure, deed-in-lieu or short sale does not in itself disqualify the loan; for a deed-in-lieu or short sale no fixed period is stated, and none may be needed if payments were unaffected and the borrower was voluntarily communicating with the servicer. VA Pamphlet 26-7, Ch. 4 Topic 7
USDA
- A Chapter 7 discharge more than 36 months before submission, or a short sale closed 36 months prior to submission, is not adverse credit; a foreclosure within 36 months, counted from title transfer, is significant derogatory credit. USDA HB-1-3555 Ch. 10
- Within 36 months, GUS Accept or Accept with Full Documentation files need no credit exception; Refer, Refer with Caution, manually underwritten and manually submitted files need one. USDA HB-1-3555 Ch. 10
Quick comparison: standard period, with the period after documented extenuating circumstances in brackets
| Loan type | Foreclosure | Short sale | Chapter 7 | Source |
|---|---|---|---|---|
| Fannie Mae (DU and manual underwriting) | 7 years (3) | 4 years (2) | 4 years (2) | B3-5.3-07 |
| Freddie Mac (manual underwriting only) | 84 months (36) | 48 months (24) | 48 months (24) | 5202.1(d) |
| FHA | 3 years (exceptions; no minimum stated) | 3 years (exceptions; no minimum stated) | 2 years (12 months) | 4000.1 II.A.5.a.iii |
| VA | Over 2 years may be disregarded; 1 to 2 with conditions | No fixed period stated | Over 2 years may be disregarded; 1 to 2 with conditions | 26-7 Ch. 4 Topic 7 |
| USDA | 36 months; GUS Accept needs no credit exception | 36 months; GUS Accept needs no credit exception | 36 months; GUS Accept needs no credit exception | HB-1-3555 Ch. 10 |
Sources
- Fannie Mae Selling Guide, September 2, 2026 version: B3-5.3-07, Significant Derogatory Credit Events — Waiting Periods and Re-establishing Credit (p. 482, 483); B3-5.3-07, Deed-in-Lieu of Foreclosure, Preforeclosure Sale, and Charge-Off of a Mortgage Account (p. 484); B3-5.3-07, General Information (p. 481); B3-5.3-09, DU Credit Report Analysis (p. 491)
- Freddie Mac Single-Family Seller/Servicer Guide, September 16, 2026 version: 5102.2(b), Manually Underwritten Mortgages (p. 5102-3); 5202.1, Credit assessment for Manually Underwritten Mortgages (p. 5202-1); 5201.1(b), Assessing Borrower's credit reputation (p. 5201-2); 5202.1(d), Adverse or derogatory credit information (financial mismanagement) (p. 5202-18, 5202-19); 5202.1(d), Adverse or derogatory credit information (extenuating circumstances) (p. 5202-15, 5202-16)
- FHA Single Family Housing Policy Handbook 4000.1, August 12, 2026 version: II.A.5.a.iii(H), Bankruptcy (Manual) (p. 288); II.A.5.a.iii(I), Foreclosure and Deed-in-Lieu of Foreclosure (Manual) (p. 289); II.A.5.a.iii(J), Pre-Foreclosure Sales (Short Sales) (Manual) (p. 290); II.A.4.a.v, Accept Risk Classifications Requiring a Downgrade to Manual Underwriting (TOTAL) (p. 203)
- VA Lender's Handbook (VA Pamphlet 26-7), August 12, 2026 version: Chapter 4, Topic 7: Credit History – Required Documentation and Analysis (Bankruptcy) (PDF p. 107); Chapter 4, Topic 7: Credit History – Required Documentation and Analysis (Table 3) (PDF p. 107); Chapter 4, Topic 7: Credit History – Required Documentation and Analysis (Foreclosures) (PDF p. 108); Chapter 4, Topic 7: Credit History – Required Documentation and Analysis (Deed in lieu or short sale) (PDF p. 108)
- USDA HB-1-3555 Guaranteed Loan Program Handbook, March 2, 2026 version: Chapter 10, Credit Accounts and Adverse Credit: Chapter 7 Bankruptcy (BK) (p. 10-11, 10-12); Chapter 10, Credit Accounts and Adverse Credit: Short Sale (p. 10-22); Chapter 10, Credit Accounts and Adverse Credit: Foreclosure or Repossession (p. 10-21)
Agency guides set the baseline; individual lenders can add stricter overlays. Sources are the guideline versions in Zeitro Strata as of October 29, 2026.