If it was a Ch 7...
FHA requires 2-years BK discharge (only 1 year if it was due to extenuating circumstances, such as medical or death of a wage earner, etc.)
VA requires 2-years BK discharge (only 1 year if it was due to extenuating circumstances)
Fannie Mae & Freddie Mac conventional require 4 years (only 2 years for extenuating circumstances)
If it was a Ch 13...
You can be still in a Ch 13 BK with FHA or VA financing, it is just required 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 it was a dismissed BK then 2 years from the dismissal date for FHA or VA financing
Fannie Mae & Freddie Mac conventional financing require 2 years from discharge date & 4 years from dismissal date (2 years from dismissal with extenuating circumstances).
In all situations you need at least 12 months of re-established credit and 3 traditional trade lines with most lenders, some lenders want 3 trade lines of 12 months each. Trade lines that survived a BK, such as a credit card you kept open, a car loan you maintained payments on/didn't include, student loans that you are making payments on that couldn't be included, etc. can count towards the re-established credit.
Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct