FHA Chapter 13 Bankruptcies
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.
FHA Chapter 7 Bankruptcies
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.
