It isnâ€™t as simple as anyone in the industry will normally share, everyone focuses on the minimum timeline and credit score threshold, in addition to those you must meet all of the other requirements as well which will be tricky after a BK.
DO NOT dispute accurate information on your credit report just because it is negative in nature, that is a serious crime regardless of what the â€œcredit repairâ€ experts tell you.
FHA will be the most forgiving avenue available to most people, in addition to the two items mentioned above you must also meet their TOTAL Scorecard, something rarely discussed by LOâ€™s.
Here are a few items I thought may help:
TRADE LINE REQUIREMENT:
The borrower must have a minimum of at least three (3) current, open trade lines with 12 months history of being paid as agreed, regardless of AUS findings. Alternative trades are acceptable with AUS approval. Examples of alternative trades include utilities, auto insurance and rent.
If the borrower is currently renting, the rental history must be verified. Rental references on the credit report are acceptable if a rating is provided. A minimum of 12 months must be verified via cancelled checks and/or bank statements if renting from an individual or VOR if completed by management company.
Must be paid in full or have a satisfactory repayment plan is in effect at time of application, established at least 12 months and there have been no late payments on the plan (documentation must be provided to prove satisfactory payments).
â€¢ Two years from discharge date; evidence the applicants have demonstrated ability to handle their credit affairs; and that applicants have re-established acceptable credit.
â€¢ Discharged less than two (2) years â€“ NOT eligible.