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Less than 2 years out of Chapter 7 Bankruptcy

Ive read online (CNN Money) that an individual was approved for an FHA loan less than 2 years out of Chapter 7 Bankruptcy, is it possible?
  • August 13 2011 - Tampa
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Answers (6)

Profile picture for Dunes....
  • August 27 2011
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Profile picture for Dunes....
  • August 27 2011
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The FHA rules are tightening up Oct 1.  I think the BK requirements will be much tougher.

David Cooper  Las Vegas
  • August 27 2011
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Profile picture for ajehardy
credit is 650-699 and i have a small credit card and car loan to help rebuild my credit.  i have 5 months left for my 2 years out of bankruptcy, i was a part time builder and was left with a lot of inventory after the housing market crashed.  I have and always had full time employment as a Merchant Marine.  I may try to get approved before my 2 years.  looking to move to Florida from Louisiana.
  • August 14 2011
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Yes it is possible but it isn't easy Here is the guideline
A Chapter 7 bankruptcy (liquidation) does not disqualify a borrower from obtaining an FHA-insured mortgage if at least two years have elapsed since the date of the discharge of the bankruptcy. During this time, the borrower must have

· re-established good credit, or

· chosen not to incur new credit obligations.

An elapsed period of less than two years, but not less than 12 months, may be acceptable for an FHA-insured mortgage, if the borrower

· can show that the bankruptcy was caused by extenuating circumstances beyond his/her control, and

· has since exhibited a documented ability to manage his/her financial affairs in a responsible manner.

Note: The lender must document that the borrower's current situation indicates that the events which led to the bankruptcy are not likely to recur.



  • August 13 2011
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Profile picture for nwhome.us
You should speak with a credit counselor directly.
There are some ways to build up credit quickly but each situation is so different that I'm not sure that a simple yes or no answer will be much help.
  • August 13 2011
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