Your tenant may be eligible for an FHA loan after only 12 months to 24 months has elapsed from the date of her Chapter 7 discharge, by: 1.) re-establishing good credit or choosing not to incur new credit obligations,
2.) showing that the bankruptcy was caused by extenuating circumstances beyond her control, and
3.) demonstrating a documented ability to responsibly manage her financial affairs, and
4.) documenting that her current situation indicates that the events that led to the bankruptcy are not likely to recur.
A chapter 13 does not disqualify her from an FHA loan if 1 year of the payout period has elapsed and that the payments have been made on time. In addition, the borrower must receive permission from the court to enter into the mortgage transaction.

It really depends on your renter's credit history. Ideally, you are looking for 2-3 years out after the official discharge date of the bankruptcy to qualify. If she has re-established credit and has a down payment for the purchase, there is a possibility they can purchase the home sooner. You should have her look into financing options now. If there are any issues to address on her credit, the sooner she starts working on them, the better. Hope this helps.

Thanks

Cherrie Catama
Mortgage Lending Direct
cacatama@mail.moneystore.com

A buyer can purchase a home two years from the date of the bankruptcy if their credit score it high enough. Have the tenant call a local lender to see if she can qualify.