What is waiting period after BK discharge (NO FORECLOSURE) before I can get FHA loan? I was told 3 years by some and 2 years by others?

Asked by Brandyburk, Forsyth, GA Thu Jun 7, 2012

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aftervince19…, , Greenville, NC
Sun May 18, 2014
Don't let a bankruptcy stop you from buying a new home. See Comstock if you have a buyer in need. They have a flexible credit loan. This program assists homeowners who have recently been through a foreclosure, short sale or have recently emerged from bankruptcy.
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Joycelewis412, Home Buyer, Sacramento, CA
Sat Aug 10, 2013
I just found a site that tells you if you can qualify for a mortgage after a short sale or foreclosure. try http http://:www.whywaitbuytoday.com
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Terri Club, , Arizona
Sun Apr 21, 2013
I had a client who wanted to buy a home in Arizona, but he had a foreclosure. After researching the web I found a loan program at http://www.cfsflex.com, they allow a mortgage after a foreclosure. There is no waiting period. Good to see lending options coming back.
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William Pola…, Mortgage Broker Or Lender, Suwanee, GA
Sat Jun 9, 2012
If you don't want to wait, consider buying a house using an LLC as an investment property OR you may qualify for a non traditional loan: interest rate starts at 9%. Requires on time rent history for 12 months and employment history of 2 years. Debt to income ratios cannot exceed 33%. No credit score or credit requirement, however credit is verified.
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Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Fri Jun 8, 2012
For a Chapter 7 Bankruptcy, HUD requires that at least 24 months must have elapsed from the DISCHARGE date of the bankruptcy.

With a Chapter 13, you can potentially purchase after 12 months of on time payments. It will require permission from the Bankruptcy Court.

Whoever told you 3 years is greatly mistaken.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle Renovation | VA | USDA | GA Dream | Jumbo Financing
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Gregorio Den…, , San Diego, CA
Thu Jun 7, 2012
It depends on what type of BK. The rules for FHA are as follows:

"A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from obtaining an FHA-insured mortgage if at least two years have elapsed since the date of the discharge of the bankruptcy. During this time, the borrower must have

- re-established good credit, or
-chosen not to incur new credit obligations. An elapsed period of less than two years, but not less than 12 months, may be acceptable for an FHA-insured mortgage, if the borrower

- can show that the bankruptcy was caused by extenuating circumstances beyond his/her control, and
- has since exhibited a documented ability to manage his/her financial affairs in a responsible manner."

"A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage, provided that the lender documents that

- one year of the pay-out period under the bankruptcy has elapsed
-the borrower's payment performance has been satisfactory and all required payments have been made on time, and
- the borrower has received written permission from bankruptcy court to enter into the mortgage transaction."

If someone does not know these FHA guidelines, you should avoid working with them. All FHA guidelines are easily found online and any loan officer who originates FHA should know them.
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If the mortgage was included then that's different. Contact Clay Branch in GA and he can explain your options for you. You can find his information at this link: http://www.zillow.com/profile/Georgia-Loans/
Flag Thu Jun 7, 2012
And my current mortgage has been included in the BK....but we are still in the house and have made all our mortgage payments.
Flag Thu Jun 7, 2012
Thanks! It was a Ch.13 then converted to a Ch. 7 and discharged in 08/09 for my husband and 01/2010 for me (lawyer screw up). Quicken were the fools who said I have to wait 3 years. Anyway, I've been told by them that our score was 667 and all we need to do is wait until August when the three years are up. We make well over 100K and all payments have been made on time since the BK. I want to shop around for the best rates but I'm afraid shopping around will kill my score. Who is the best FHA lender for Georgia?
Flag Thu Jun 7, 2012
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