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FHA After Chapter 7 Bankruptcy

Can I apply for an FHA loan after filing for bankruptcy? What are the stipulations and requirements I need to follow in order to do so? by nancy7_205_152 from Tucson, Arizona. Nov 10th 2011 Reply


Ron Pippin (RonPippin)
#26 ranked lender in Utah - 158 contributions

After a chapter 13 BK, you can apply for a loan within 1 year. In fact, the BK doesn't have to be completed provided all payments have been made on time. A chaprter 7 BK will require 2 years after discharge. Be sure to re-establish positive trade lines so that your credit socres will recover.

Nov 10th 2011
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Lynne Dewar (ldewar)
#46 ranked lender in Arizona - 16 contributions

You must wait two years after the discharge date. You also must have extenuating circumstances and re-established credit

Nov 10th 2011
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

The waiting time is 2 years for CH7 and if there was a foreclosure involved, you need to wait 3 years from the date the property transferred out of your name. Keep in mind, that if a property was included in your BK, the lender does not always foreclose immediately... We have a client who filed BK 3 years ago, but the lender foreclosed in the last year.. he needs to wait another 3 years because of the foreclosure delay... WilliamAcres.com

Nov 10th 2011
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Renee Gerke GML, GRL, CRMS (Arizona_Mortgages)
#39 ranked lender in Arizona - 6 contributions

After a chapter 7 bankruptcy you'll have to wait 2 years from the discharge date reported on the credit report. You must have reestablishedgood credit and demonstrated an ability to successfully manage personal finances. Re-established credit is not accomplished through payroll deduction loans. You must clearly take responsibility foractively managing personal finances. You lender will request:o Copies of the bankruptcy petition, schedule of debts and the discharge papers indicating which debts weredischarged;o Evidence that all debts not satisfied by the bankruptcy have been paid or are being paid in a satisfactory manner (only those payments or delinquencies which occurred during the bankruptcy are to be omitted from credit reporting - those payments since discharge on reaffirmed debts must be verified and paid on time);o A written statement from the applicant satisfactorily explaining the causes of the bankruptcy, ando Any other evidence necessary to support the fact that factors outside the applicant's control caused the bankruptcy and the applicant has re-established and maintained an acceptable credit reputation. A self employed applicant with a prior bankruptcy which was the result of a business failure is not a candidate for financing unless three (3) years have passed since the bankruptcy and the file contains evidence the new business is financially sound.

Nov 10th 2011
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,061 contributions

Generally there is a two year waiting period after a chapter 7 bankruptcy is discharged before a lender would grant a new loan. The best thing for you to do is to contact a local Mortgage Banker, such as myself to work through your particulart situation and give you the date you will be eligible. Odds are there are a lot things that need to be cleaned up on your credit profile. If so, I can help you with a plan to get you loan ready as soon as you are time eligible. Give me a call and we'll get you set up.

Nov 10th 2011
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Crestico Funding (CresticoFunding)
#314 ranked lender in California - 340 contributions

Nancy, Minimum requirements for an FHA loan after CH 7 is 12 months on a case by case, most lenders require you to have a 24 months re-established credit history after your BK has been discharged.

Nov 10th 2011
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