Seasoning Periods by Program

Foreclosure (sale completed)

• FHA: 3 years from sale / completion date (program minimum). Some lenders allow 2 years with documented extenuating circumstances.
• VA: 2 years from completion.
• USDA: 3 years.
• Conventional (Fannie Mae / Freddie Mac): 7 years standard. 3 years with extenuating circumstances and a 90 percent LTV cap.
• Jumbo: 7 years typical at most lenders.

Short sale or deed-in-lieu of foreclosure

• FHA: 3 years (some lenders allow 2 with extenuating circumstances).
• VA: 2 years.
• Conventional: 4 years standard. 2 years with extenuating circumstances and a 90 percent LTV cap.
• Treated more favorably than full foreclosure across most programs.

Mortgage charge-off

Treated similarly to foreclosure by most lenders. The clock starts at the charge-off date as reported on your credit report.

What "Extenuating Circumstances" Means

Documented one-time events that caused financial hardship outside the borrower's control. Examples include:

• Medical emergency or serious illness
• Sudden job loss (layoff, employer closure)
• Death of a co-borrower
• Divorce
• Natural disaster

The borrower must demonstrate three things: the event happened (documentation), recovery has occurred (employment, income), and the current financial picture is stable. Conventional and FHA have specific documentation requirements for this pathway.

What Lenders Want to See After the Seasoning Period

• Re-established credit: typically 3 to 4 trade lines reporting in good standing
• No new derogatory marks since the foreclosure
• Stable employment and verifiable income
• Documented funds for down payment and reserves
• A brief letter of explanation: what happened, what changed, why it will not happen again

Foreclosure vs Bankruptcy Seasoning

These are tracked separately and have different clocks:

• Foreclosure clock starts at the sale / completion date
• Bankruptcy clock starts at the discharge date
• If both happened, the longer of the two seasoning periods applies

See our mortgage after bankruptcy guide for the bankruptcy-specific seasoning rules.

Strategies to Buy Sooner

• FHA is generally the shortest path back to homeownership. 3-year seasoning with a 580 FICO and 3.5 percent down at program minimums (we work with lenders going to those minimums where allowed).
• VA if you are a veteran. 2-year seasoning, no minimum down payment, no PMI.
• Re-establish strong recent credit before applying. Secured credit cards, credit-builder loans, and consistent on-time payments on remaining obligations rebuild the file.
• Save 10 to 20 percent down for stronger underwriting position even on programs that allow less.
• Stable employment for at least 6 months before applying.
• Document any extenuating circumstances with paper records (medical bills, layoff notice, divorce decree, etc.).

Lender Overlays

Many lenders impose stricter requirements than program minimums. For example, FHA program minimum is 3 years for foreclosure, but a given lender may set their internal overlay at 4 or 5 years. We work with lenders that follow program minimums where allowed, so a borrower who clears the agency seasoning can actually get the loan.

Frequently Asked Questions