Home Buying in 94530>Question Details

Lucinda, Home Buyer in Rushford, MN

I claimed Chap. 7 24 months ago. My credit is 660. Is there a way to potential get approved for a FHA loan?

Asked by Lucinda, Rushford, MN Fri May 29, 2009

And can I use the down payment assistance programs (not a first time HB)?

Any advice is greatly appreciated....just trying to sort things out.

Help the community by answering this question:


I think you have to wait seven years.
0 votes Thank Flag Link Tue Sep 25, 2012
USDA is a great program but the property has to be in a USDA designated rural area. Also, USDA has no monthly MI, but it does have 2% up front MI (although they don't technically call it MI) that can be rolled into the loan. But it you live in a rural area it is a fantastic loan. The guidelines are a bit tighter than FHA, as FHA will go up to 55%+ back end debt-to-income ratio where USDA is 41-43%.
0 votes Thank Flag Link Fri May 29, 2009
Hi Lucinda, I agree with the 2 year timeline. You also need an "accept/approve" from FHA's TOTAL credit worthiness system in addition to FHA's automated underwriting system. No other documentation regarding the BK is required.

Best, Steve
0 votes Thank Flag Link Fri May 29, 2009
Yes it is possible... you really need to look at USDA though.
Go to
click on the left "Single Family Housing-Property Eligibility"
You can put in an address and see if it is eligilbe or go to the county/city you are looking in.
I have more information on my site as well.
I put people in this program all day long, even those that can put 20% down. It is excellent!

Chris Suarez
0 votes Thank Flag Link Fri May 29, 2009
Hi Lucinda,

According the FHA mortgage brokers that I use, obtaining an FHA loan is possible after 2 years from BK-7 discharge date. I think you must have re-established good credit history and have paid other bills on time. Best to go straight to the source though and talk to a reputable mortgage broker who does FHA loans.

Good luck,
Web Reference: http://www.kristashouse.com
0 votes Thank Flag Link Fri May 29, 2009
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