Qualify FHA Loan 2 Years After Chapter 7 Bankruptcy is a post from: FHA,VA and Conventional Home Loans in all 50 States
During recessions and economic hard times, personal bankruptcies often rise as people lose their jobs and have difficulty paying their bills. The most popular form of personal bankruptcy is a Chapter 7 bankruptcy. The good news is you can qualify FHA loan to buy a new personal residence only 2 years after your bankruptcy 7 discharge. So if you had a bankruptcy 7 around this time in 2008, you may already be to get a FHA loan.
There are few key factors if you have had a bankruptcy or may have one to start preparing yourself for FHA loan approval in the near future:
- Look for the discharge date on your bankruptcy, not the date you initiated it. This is the date the FHA loan underwriter will go off to make sure you are two years or more after for FHA loan approval.
- Make sure under no circumstances are you late on ANYTHING after the bankruptcy. If you have any derogatory credit after the bankruptcy it could cause you to be denied the FHA loan. This includes late payments, collections, charge-off’s, etc…
- Try to re-establish credit immediately after the bankruptcy. Try to get a secured credit card from your bank or maybe a store card. And just charge small items that you need on these cards and pay them off every month. This will allow the FHA loan underwriter to see that you have re-established lines of credit and you are showing a reliable payment history.
So in summary, all is certainly not lost if you have declared Chapter 7 bankruptcy. If you follow my advice you can immediately be back on the road to getting FHA loan approval and buying a wonderful primary residence for you to enjoy.
Some great aspects of FHA loans to remember:
- FHA loans in California can be had up to $729,750 with 3.5% down. This allows you to qualify FHA loan even in expensive coastal areas such as San Diego, Los Angeles, Orange County, San Francisco, San Jose and more.
- FHA loan credit scores do not have to be perfect. A 620 score is all you need to be considered.
- 3% of FHA loan closing costs can be paid by the seller
- FHA loan interest rates are still extremely loan compared to historical norms
Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions at all about getting approved for a FHA, VA or conventional Loan.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA specialist)
858-922-7899
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