How long after a chapter 7 bankruptcy has been discharged could someone get an FHA loan?

Asked by Trylyn01, Indianapolis, IN Thu Aug 20, 2009

Help the community by answering this question:

+ web reference
Web reference:

Answers

6
Eugenia, , Indianapolis, IN
Sun Jul 7, 2013
If you are looking to buy a house contact Jamelle Walker 317-453-0917. He is great at what he does. He can find the answer for you and get you a mortgage company that will work with you.
0 votes
Roy Bush, Both Buyer And Seller, Phoenix, AZ
Sun Jun 30, 2013
I had a buyer that wanted to buy a home in Arizona, but he had a Chapter 7 bankruptcy 7 months ago. After researching the web I found a loan program at http://www.cfsflex.com, they allow a mortgage after a foreclosure, short sale, or bankruptcy. There is only a six month waiting period. Good to see lending options coming back.
0 votes
Jim Thomas, , Fishers, IN
Thu Dec 17, 2009
FHA Financing:

Bankruptcy:
Ch7-2 years from discharge date
Ch13 1 year satisfactory repayment history and trustee approval

Foreclosures: A 3 year waiting period from the date of the foreclosure or Sheriff's sale. In the instance that a HUD claim was filed, it is 3 years from the date HUD paid the claim. Again, the 3 year waiting period MAY be waived if the underwriter determines that the foreclosure was caused by extenuating circumstances totally beyond the borrower(s) control
0 votes
Tony Grego, , Indianapolis, IN
Tue Dec 8, 2009
First answer says it all. The bad news is that times are changing. Very soon FHA will increase the down payment and seller concessions. Also many investors are going to a 640.
Craig has great points with USDA if you find a property that fits.

I'm a local Indiana Banker in Castleton. If you need some help (BK can be tricky) give me a call or email. I can and will help. Also I can close in as little as ten days with direct bank rates and low fees.
Good Luck
Tony
0 votes
Craig Bartels, Agent, Indianapolis, IN
Wed Oct 7, 2009
The other answers on this is good. Are you looking to purchase a home in the country? One thing most people are not aware of is the USDA Loan Program. If the home is included in the area that the USDA Loan program works in, you can purchase a home with less then 12 months on a bankruptcy. My client is buying a brand new Ryland home in Whitestown(Anson development). Whitestown is part of the USDA area, so he is able to buy a $190k brand new home less then 12 months out of bankruptcy.

I have several lenders that have specialized in working with the USDA loan program for over 10 years now. Contact me if you have interest or additional questions. You won't be able to buy in Marion county, but many adjoining counties qualify.

Also: NO DOWN PAYMENT REQUIREMENT!

Here is more details:

http://www.rurdev.usda.gov/RHS/sfh/brief_rhguar.htm

There is income requirements, but they seem pretty liberal.
0 votes
Nike (Nikki)…, , Beverly, Chicago, IL
Mon Aug 24, 2009
Hi,

The FHA rule is 2 years after the Chapter 7 discharge. You would need to reestablish credit and most Lenders want the 620 score. Also, if you rent right now, make sure to start paying your rent by check or money order, and keep copies of the cancelled checks. They may be of great value when you apply for the mortgage.

There are a few Lenders who look beyond the 620 score and they would be looking at your whole picture - income, assets, time on job, rent payments, other bills you pay etc.

You need an experienced Loan Officer in FHA transactions to help you collate and present the best picture you can to the Lender.

Good luck.

Nike (Nikki) Fasanya
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more