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What is FHA requirements regarding having both a Chapter 7 and Chapter 13 bankrupty?

  • November 20 2012 - Fairfield
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Answers (4)

Did you roll one bankruptcy into another or did you experience two separate bankruptcies?

If it is a case of rolling one into another, it is viewed as one and a matter of qualifying according to guidelines.  If it is a case of the latter, you most likely will have to wait until at least one of the bankruptcies ages off of the credit report.   After a bankruptcy, Guidelines require the borrower to show evidence of being able to handle financial affairs in a satisfactory manner.  A bankruptcy after a bankruptcy does not show this (unless there is some documentable event, outside your control that caused the bankruptcy.)
  • November 23 2012
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Jeff, I am not being rude in asking this however why do you keep posting 3 years on a fha chapter 7?

The guidlines are 2 years after a chapter 7 and I have plenty of investors that follow this guidline.

Has your experience been that your fha applications are denied unless its 3 years or are you just misinformed, again I am asking and not looking to insult you.
  • November 21 2012
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You most likely will not be able to get a loan until 3 years after your discharge date
  • November 20 2012
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According to F H A.com

CHAPTER 13 BANKRUPTCY

FHA will consider appoving 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.

CHAPTER 7 BANKRUPTCY

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.

  • November 20 2012
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