For FHA Mortgage Lenders Approval After Bankruptcy
A Chapter 7 bankruptcy (liquidation) does not disqualify a FHA mortgage applicants from obtaining an FHA-insured Mortgage if, at the time of case number assignment, at least 2 years have past since the date of the bankruptcy discharge. During this time, the FHA mortgage applicants must have:
- re-established good credit; or
- chosen not to incur new credit obligations.
For Chapter 13 FHA mortgage approval you must have at least elapsed no less than 12 months, may be acceptable, if the FHA mortgage applicants:
- can show that the bankruptcy was caused by extenuating circumstances beyond the FHA mortgage applicants control; and
- has since exhibited a documented ability to manage their financial affairs in a responsible manner.
A Chapter 13 bankruptcy does not disqualify a FHA mortgage applicants from obtaining an FHA-insured Mortgage, if at the time of case number assignment at least 12 months of the pay-out period under the bankruptcy has elapsed.
The Mortgagee must determine that during this time, the FHA mortgage applicants payment performance has been satisfactory and all required payments have been made on time; and the FHA mortgage applicants has received written permission from bankruptcy court to enter into the mortgage transaction.
What are the guidelines for FHA mortgage applicants with a previous foreclosure or deed-in-lieu of foreclosure? A FHA mortgage applicants is generally NOT eligible for a new FHA-insured mortgage if the Borrower had a foreclosure or a deed-in-lieu of foreclosure in the last 3 three-year period prior to the date of case number assignment. This…