FHA Loan Requirements After Bankruptcy in California is a post from: FHA,VA and Conventional Home Loans in all 50 States

The good news is FHA loan requirements only require you to wait two years after a chapter 7 bankruptcy before you can apply for a FHA home loan.

For a Chapter 13 bankruptcy you only have to wait one year, and:

• all  your payments to your creditors have to be on time
• you have to get permission from the bankruptcy court to enter into a new home mortgage
• all the payments to your creditors will be included in your debt-to-income ratio to qualify

Additionally, if you had a chapter 7 bankruptcy, FHA loan requirements will require you to not have any derogatory credit items after your bankruptcy and you will have to have re-establish your credit.  This means you will want to have some open active lines of credit such as a car loan, credit card or student loans.  This shows the FHA loan underwriter you have re-established credit and are making payments on time.

Another important point, if you had a mortgage that was included in the bankruptcy, FHA loan requirements will require you to wait three years from the date of the foreclosure (deed transfer out of your name) to qualify for a FHA loan.  You have to be careful with this because many times people will include a mortgage in  bankruptcy, stop making payments and move out, and then the lender takes a long time to actually foreclose on the property.  This can prolong your wait considerably to get a FHA loan in California, as the FHA underwriter will require you to wait three years from the date of the foreclosure, even if the mortgage was included in a bankruptcy.

If you have any questions or would like to get approved, please call me at 858-922-7899 or email me a homeloan8@gmail.com.

Some highlights of FHA loans in California:

• FHA loan limits in many parts of California such as Los Angeles, Orange County, San Francisco, San Jose, Alameda County, Anaheim, Santa Ana, still go up to $729,750 but are going down to $625,000 as of October 1st
• FHA loan credit score does not have to be perfect, give us a call if you have credit issues as we are experts on assisting
• FHA loan rates are at close to 60 year lows
• FHA loan guidelines only require 3.5% down and that can be a gift from a relative

Regards,

Rob Chomentowski

Sr. Loan Officer

858-922-7899

homeloan8@gmail.com

 

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