Updated November 2026 · Reviewed by Joel Lobb, Senior Loan Officer, NMLS #57916, EVO Mortgage
Yes, you can buy a home in Kentucky after bankruptcy. After a Chapter 7 discharge, VA and FHA allow a new mortgage after 2 years, USDA after 3, and Conventional after 4. During a Chapter 13, FHA, VA and USDA can approve you after 12 months of on-time plan payments with the trustee's permission. Rebuilt credit and steady income matter as much as the calendar.
Waiting periods by loan program
| Event | FHA | VA | USDA | Conventional |
|---|
| Chapter 7 bankruptcy | 2 years from discharge | 2 years from discharge | 3 years from discharge | 4 years from discharge |
| Chapter 13, still in the plan | 12 months of on-time payments + trustee approval | 12 months of on-time payments + trustee approval | 12 months of on-time payments + trustee approval | Not eligible until discharged |
| Chapter 13, discharged | No wait if 12 months of payments were made | No added wait with satisfactory payments | Case by case | 2 years from discharge (4 from dismissal) |
| Foreclosure | 3 years | 2 years | 3 years | 7 years |
| Short sale / deed-in-lieu | 3 years | Usually 2 years | 3 years | 4 years |
Some programs shorten these periods for documented extenuating circumstances such as a death, serious illness or job loss outside your control. For example, FHA can go to 1 year after a Chapter 7 and Conventional to 2 years. KHC loans follow the rules of the FHA, VA, USDA or Conventional loan they're paired with, and also need a 620 credit score.
Chapter 7: what lenders look for
The waiting period starts at the discharge date, not the filing date. After that, lenders want to see re-established credit with no new late payments, stable two-year employment, and a down payment or assistance source. Many Kentucky buyers use FHA or VA at the 2-year mark, often paired with KHC down payment assistance.
Chapter 13: buying during the plan
You don't have to wait for discharge. With 12 months of on-time plan payments, FHA, VA and USDA can approve a purchase if your trustee or the court signs off on the new mortgage. These files are usually manually underwritten, so DTI limits are tighter and every late payment in the past year matters. Start by asking your bankruptcy attorney how your trustee handles permission to incur new debt.
Foreclosure, short sale and deed-in-lieu
VA is the most forgiving at about 2 years. FHA and USDA usually need 3. Conventional is the longest at 7 years after a foreclosure. If a foreclosure was included in a bankruptcy, FHA typically measures from the later of the two dates.
How to qualify sooner after bankruptcy
- Rebuild credit right away. One or two secured cards kept under 10% utilization and paid on time can lift a score quickly. See the Kentucky credit score guide and the credit score simulator.
- Keep every payment on time. A single late payment after bankruptcy weighs more than the bankruptcy itself.
- Check your reports. Discharged debts should show a $0 balance and "included in bankruptcy". Fix errors before applying.
- Write a short explanation letter covering what caused the bankruptcy and why it won't happen again.
- Keep your DTI in range. Use the Kentucky DTI calculator; manual underwriting usually caps FHA at 31% / 43%.
Not sure where you stand?
Send me your situation and I'll tell you which Kentucky loan fits and what it takes to get approved. Start a free pre-approval review or call or text 502-905-3708.
Frequently asked questions
How long after Chapter 7 bankruptcy can I buy a house in Kentucky?
Two years after discharge for FHA and VA, three years for USDA, and four years for Conventional loans. Some programs allow less with documented extenuating circumstances.
Can I buy a house while in Chapter 13 bankruptcy?
Yes. FHA, VA and USDA can approve a purchase after 12 months of on-time Chapter 13 plan payments, as long as your bankruptcy trustee or the court approves the new mortgage.
How long after foreclosure can I get a mortgage?
About 2 years for VA, 3 years for FHA and USDA, and 7 years for Conventional loans, measured from the date the foreclosure was completed.
Can I use KHC down payment assistance after bankruptcy?
Yes. KHC follows the waiting periods of the FHA, VA, USDA or Conventional first mortgage it is paired with, and requires a 620 credit score.
Does the waiting period start at filing or discharge?
For Chapter 7 it starts at the discharge date. For Chapter 13, approval during the plan depends on 12 months of on-time payments rather than a waiting period.
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General information, not a commitment to lend. Guidelines change and lenders may add overlays; your approval depends on full credit, income, asset and property review. Joel Lobb, NMLS #57916, EVO Mortgage, Company NMLS #1738461, 10602 Timberwood Cir Ste 3, Louisville, KY 40223. Equal Housing Opportunity.
