What down payment do fresh start loans require?

The more recent the credit event, the more skin in the game lenders want — commonly 20–30% down for very recent events, easing as time passes and credit rebuilds.

Is it smarter to wait for FHA or conventional?

Sometimes yes — if you're months away from FHA eligibility, waiting can be cheaper. A good specialist will map both paths honestly: buy now with non-QM and refinance later, or wait for agency financing.

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A Mortgage After Bankruptcy or Foreclosure

Q: How soon after bankruptcy can I get a mortgage?

Conventional loans generally require about four years after a Chapter 7 discharge and FHA about two. Non-QM fresh start programs can lend much sooner — some as soon as one day after discharge — in exchange for a larger down payment and a higher rate.

Q: How soon after foreclosure can I buy again?

Conventional typically requires around seven years and FHA about three. Non-QM programs exist with little to no seasoning, priced according to how recent the event was.

By the AdaptLend Team · Content contributor: Moh Alloo, licensed mortgage loan originator · Updated July 6, 2026

A past bankruptcy or foreclosure does not lock you out of homeownership — it just changes which lender will say yes. Conventional loans generally make you wait about four years after a Chapter 7 discharge (roughly seven after a foreclosure); FHA cuts that to about two and three. Non-QM "fresh start" programs go further: some will lend the day after discharge, pricing the loan to how recent the event was and how much you put down.

Typical waiting periods at a glance

Conventional: ~4 years after Chapter 7 discharge · ~7 years after foreclosure · ~4 after short sale
FHA: ~2 years after Chapter 7 · ~3 years after foreclosure (with re-established credit)
VA: ~2 years after Chapter 7 or foreclosure for eligible veterans
Non-QM fresh start: little to no seasoning with some lenders — recency is priced, not prohibited

These are common guidelines, not guarantees — extenuating-circumstance exceptions exist, and every lender overlays its own rules. That's precisely why matching to the right lender matters more here than anywhere else in lending.

How lenders think about it (it's not moral judgment)

Underwriting after a credit event asks three questions: Was the event an isolated chapter with a story — medical, divorce, a business that failed — or a pattern? Has payment behavior been clean since? And is there enough down payment that the borrower shares the risk? Answer those well and "yes" gets a lot closer. Nobody at the closing table asks how you felt about 2024.

What you'll typically need

Down payment: the recency dial — very recent events often want 20–30% down; two-plus years out can look much more normal
Clean since: 12+ months of on-time rent and bills carries real weight
Documented income: any flavor works — W-2, bank statements, or assets
A letter of explanation: a short, honest paragraph about what happened and what changed

The honest part: buy now vs. wait

Fresh start pricing is the most expensive corner of non-QM — the more recent the event, the more you pay. Sometimes the right answer genuinely is "wait nine more months for FHA." The math that matters: what does renting cost you (in both dollars and a rising market) versus the rate premium of buying now and refinancing once you're agency-eligible? A specialist who does these weekly can run both paths in one conversation — and should tell you plainly if waiting wins.

Frequently asked questions

How soon after bankruptcy can I get a mortgage?

Conventional: about four years after Chapter 7. FHA: about two. Non-QM fresh start: some programs lend as soon as one day after discharge, with more down and a higher rate.

How soon after foreclosure can I buy again?

Conventional: around seven years. FHA: around three. Non-QM: little to no seasoning with some lenders, priced to recency.

Will applying hurt my rebuilt credit?

Our form never touches your credit. When you eventually apply with a lender, that inquiry's effect is small — a few points, briefly — compared to the payment history you've been rebuilding.

Chapter 13 — do I have to wait for discharge?

Not always. FHA can work during a Chapter 13 with 12 months of on-time plan payments and court approval, and some non-QM programs are similarly flexible. Very lender-specific — ask your specialist.