FHA Loan Requirements After Bankruptcy Discharge

Unfortunately, many people have struggled due to economical conditions that were out of their control and forced into bankruptcy.  The good news is that in as little as 2 years from the discharge date (not the date you filed bankruptcy) of your chapter 7 bankruptcy, you can apply for a FHA home loan and you only have to wait just one year after a chapter 13. However, with a chapter 13, you still have to qualify with your debt payments included in with your debt to income ratio as well as getting permission from the courts.

Was a mortgage included in with your bankruptcy?

FHA loan requirements require that if a mortgage was included in your bankruptcy, you have to wait 3 years from the official date of foreclosure. Now many people get confused with this, but you have to remember that it’s the date that the title of the property was transferred out of your name, not the date of bankruptcy discharge.

Use your credit responsibly post-bankruptcy

It is extremely important that you are able to show the lender that you have learned from your past mistakes and you are now more responsible about paying all of your debts and on time. Any delinquencies post-bankruptcy will disqualify you from being able to get approved for a FHA insured home loan.

Your credit score will also play a very important roll on whether you get approved, or not. Even with having a bankruptcy recorded on your credit report, you can still obtain a good credit score. Although your interest rate at first will be higher than most, you’re going to have to re-establish your credit. This means that you’re going to need to open new credit lines to show that you are now a more responsible borrower. Get a new car loan or credit card. Capital One is a great lender that works well with people who have filed bankruptcy.

Author: Scott Skyles

Since 1995, Scott has been involved with over $1 Billion in mortgage fundings and is recognized as an expert in residential mortgage lending. Scott is licensed and able to originate mortgage loans in all 50 states. You may follow Scott on your favorite social networks: Facebook | Google+ | Twitter

7 thoughts on “FHA Loan Requirements After Bankruptcy Discharge”

  1. I am confused (as is my loan officer) in that FHA guidelines don’t specifically address an FHA loan after a Chapter 13 discharge. There is guidance for a Chapter 7 discharge, but Chapter 13 is only addressed as getting court permission to obtain a loan at least one year after filing. My lender wants a letter from the court stating I have their permission to get a loan – the court says they can’t provide a letter since my case was discharged 20 months ago! Is there any additional guidance you can provide??

    1. Would your lender be able to take the foreclosure letter? The guidelines state that in a chapter 13, the waiting period begins after the date of foreclosure.

  2. We had a CH7 the house was included, no foreclosure occured the house sold prior to that happening, house is being reported as included in CH7 on a three credit reports, wat is the waiting time for us?

  3. I have a mtg that was included in a chapt 7 bk about a year and a half ago. Public record staes the house hasn’t been in our name since last year. What does this mean as far as my waiting period to apply for a fha mtg?

  4. my lender just told me, hearing back from a fha underwriter that its 3 years from the discharge date if a mortgage was included on the chapter 7, my forclosure happened 4.5 years ago, the bank 1099 me on the remaining balance and that what i filed on?

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