Plenty of HUD buyers have a bankruptcy or a foreclosure behind them. That is fine with HUD; HUD sells to anyone whose lender will close. The question is which lender, and how long since the event.
The waiting periods
| Event | FHA | VA | Conventional (Fannie/Freddie) |
|---|---|---|---|
| Chapter 7 bankruptcy | 2 years from discharge | 2 years from discharge | 4 years from discharge (2 with documented extenuating circumstances) |
| Chapter 13 bankruptcy | 1 year of on-time plan payments, with court permission, or 2 years from discharge | 1 year of plan payments with court permission | 2 years from discharge, 4 from dismissal |
| Foreclosure | 3 years from the date title transferred | 2 years | 7 years (3 with extenuating circumstances) |
| Deed-in-lieu or short sale | 3 years | 2 years | 4 years (2 with extenuating circumstances) |
These are agency minimums. Individual lenders can add overlays, and some do. If one lender says no, ask another.
The check people forget: CAIVRS
If the foreclosure was on an FHA or VA loan, the government may have paid a claim. That puts you in CAIVRS, the federal delinquent-debt database, for three years from the claim payment date, which can be well after the foreclosure date. Your lender runs CAIVRS at application. Ask them to run it before you bid so you are not surprised on day 20 of a 45-day clock.
Rebuilding to qualify
- FHA wants 12 months of clean payment history after the event, no new collections, and re-established credit (a secured card and an installment loan will do).
- Score floors are lender-specific. 580 to 620 is common for FHA with 3.5% down.
- CHFA and metroDPA both allow FHA loans after bankruptcy on the same waiting periods, so down payment help is still on the table. DPA programs.
Why HUD homes fit this buyer
FHA has the shortest waits, HUD homes are built for FHA, and the owner-occupant exclusive period keeps investors out of the first month. A buyer two years past a Chapter 7 with a 620 score and a CHFA grant is a completely normal HUD buyer.
A plain-English example
A buyer in Greeley had a Chapter 7 discharged in March 2024 and a foreclosure on a conventional loan that completed in May 2023. FHA’s clock: 2 years from the discharge (March 2026) and 3 years from the foreclosure (May 2026). She became eligible in May 2026, bid on an IN home in June with a CHFA second, and closed in July. Her CAIVRS check was clean because the foreclosed loan was not FHA-insured.
Not sure which rule applies to the house you are looking at? Call or text 303-955-4220. A live person answers, and the answer is free.
Written and reviewed by
Brian Lee Burke, Colorado HUD home specialist and team leader
Licensed Colorado real estate professional since 2002 · REALTOR® · Team leader and licensed broker of the Kenna Real Estate Group at Keller Williams DTC, a HUD-registered group that regularly bids on HUD homes · Author of The Real Estate Playbook and Mastering Real Estate. Brian’s full HUD biography.
Last reviewed: September 15, 2026 · Sources: HUD Home Store (hudhomestore.gov) and HUD program guidance, HUD Handbook 4000.1, REcolorado MLS data via kennarealestate.com, and the Kenna Real Estate Group’s own HUD transaction files.
Contact: call or text 303-955-4220 or homes@kennarealestate.com. During office hours you reach a live local Kenna real estate professional, not a robot or a national call center. Brokerage: Kenna Real Estate Group at Keller Williams Realty DTC, LLC, 6300 S Syracuse Way, Suite 150, Centennial, CO 80111. Each Keller Williams office is independently owned and operated. The Kenna Real Estate Group is an independent real estate team and is not affiliated with or endorsed by HUD or any government agency; official property information comes from HUD Home Store. Equal Housing Opportunity.
Free guide, PDF
The Colorado HUD Home Buyer's Playbook
How HUD bidding really works, the nine ways buyers lose, and the bid worksheet. 18 pages, free.
Why you want it before you bid:
- The 15-day owner-occupant window, day by day, so you never miss a deadline
- The net-to-HUD math HUD actually scores, with a one-page bid worksheet
- The nine ways buyers lose a HUD home, and how each one is avoided
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