At least twenty four months must have elapsed since the discharge date of the borrower's Chapter 7. A full explanation will be required with the loan application. In order to qualify for an FHA loan, the borrower must qualify financially, have re-established good credit and have a stable job.
Chapter 13 bankruptcy
FHA will consider approving a borrower who is still paying on a Chapter 13 Bankruptcy if those payments have been satisfactorily made and verified for a period of 12 months. The court trustee's written approval will also be needed in order to proceed with the loan.
Borrowers with a prior bankruptcy, foreclosure, deed-in-lieu, or short sale may be eligible for an FHA insured loan if the bankruptcy, foreclosure, deed-in-lieu, short sale was the result of a documented extenuating circumstance.
Borrowers may also be eligible for an FHA insured loan on a purchase transaction after 12 months from the completion, discharge, trustee's sale if the borrower meets the requirements for extenuating circumstances Economic Event.
FHA does not require collection accounts to be paid off as a condition of mortgage approval. However, FHA does recognize that collection efforts by the creditor for unpaid collections could affect the borrower’s ability to repay the mortgage.
If evidence of a payment arrangement is not available, the lender must calculate the monthly payment using 5% of the outstanding balance of each collection, and include the monthly payment in the borrower’s debt-to-income ratio.
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Mortgage World Home Loans is an online mortgage company specializing in FHA loans for first time home buyers. To buy a home with 3.5% down payment and a minimum credit score of 580 using an FHA loan, apply now.
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FHA bankruptcy waiting period 2019 Florida and New Jersey
Credit score needed
to buy a house or refinance
FHA credit score
FHA requires a minimum 500 credit score to buy a house
VA credit score
VA requires a minimum 500 credit score to buy a house
Fannie Mae credit score
Fannie Mae requires a minimum 620 credit score to buy a house
Freddie Mac credit score
Freddie Mac requires a minimum 620 credit score to buy a house
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