Florida Mortgage After Bankruptcy

Florida Mortgage After Bankruptcy

The lowest credit score to buy a home or refinance is 500. New requirements for both FHA and VA require a minimum FICO score of 500.

Florida mortgage after Bankruptcy guidelines:

• Fannie Mae minimum score 620 and 4 years after Bankruptcy
  
• Freddie Mac minimum score 620 and 4 years after Bankruptcy
• FHA minimum score 500 and 2 years after Bankruptcy
• VA minimum score 500 and 2 years after Bankruptcy
• USDA minimum score 640 and 2 years after Bankruptcy
• Portfolio minimum score 640 and 4 years after Bankruptcy

FHA loans allows refinance or purchase after bankruptcy. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan.

Chapter 7 Bankruptcy

At least two years must have elapsed since the discharge date of the borrower and / or spouse's Chapter 7 Bankruptcy, according to FHA guidelines. This is not to be confused with the bankruptcy filing date. 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 one year. The court trustee's written approval will also be needed in order to proceed with the loan. The borrower will have to give a full explanation of the bankruptcy with the loan application and must also have re-established good credit, qualify financially and have good job stability.

A perfect credit score is not needed for an FHA loan approval. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a for a conventional loan. Sometimes scores down to 500 are accepted if there are compensating factors that offset the credit risk.

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