Kerrienj here iis the specific wording from FHA regarding a chapter 7 bankruptcy. I've also include a link to the book itself. These guidelines cover the entire US. Based on this information provided, you won't be able to close until the 2 year anniversary of the discharge of the chapter 7 bk unless their were extenuating circumstances that put you inthe chapter 7 BK. If not you may however be able to get a commitment in the 22 or 23 month with a stipulation that you can close beyond the bk anniversary date.

A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from obtaining an FHA mortgage if at least two years have elapsed since the date of the discharge of the bankruptcy. Additionally, the borrower must have re-established good credit or chosen not to incur new credit obligations. The borrower also must have demonstrated a documented ability to responsibly manage his or her financial affairs. An elapsed period of less than two years, but not less than 12 months, may be acceptable if the borrower can show that the bankruptcy was caused by extenuating circumstances beyond his or her control and has since exhibited a documented ability to manage his or her financial affairs in a responsible manner.

Additionally, the lender must document that the borrower's current situation indicates that the events that led to the bankruptcy are not likely to recur. A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA mortgage provided the lender documents that one year of the payout period under the bankruptcy has elapsed and the borrower's payment performance has been satisfactory (i.e., all required payments made on time). In addition, the borrower must receive permission from the court to enter into the mortgage transaction.

You need two years.

I am a Loan Officer. If I can be of assistance, please let me know.

Martin.Smith@Emeryfed.com

Martin

good evening.....you are on the right track....fha requires two years seasoning from the date of discharge of a chapter7 bk....however, if the cause of the bk was beyond your control (car accident and couldn't work, etc, etc.) at the underwiter's discretion, you may be okay....if it was poor money management then you'll need to wait the two yrs....best of luck...bob mcclure- success mortgage partners- plymouth, michigan.....

Kerrinj,

There is no one answer to your question your credit score is good enough to get you qualified but there are other factors.

One is your DTI (Debt To Income) ratio. That needs to be in line also. If you have too much going out divided by how much you have coming in then you DTI ratio could be too high to qualify you. If it is within the guidelines set by the lender then you passed that test also.

The BK may be too recent for some lenders. Some lenders require 3 years to elapse prior to considering a new loan.

Check with lenders in your area to see if you qualify. Call them up, explain your situation, quote your credit score, and ask them if they have a program for which you qualify.

Best of luck

R. Todd Scott
Senior VA FHA Loan Specialist
iFreedom Direct
CA & TX Loans
800 891-5785 X4625