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When can you apply for FHA after BK?

My husband is rebuilding credit after a BK that was very necessary after having several investment properties go in Foreclosure after the market fell. We are now renting for 2 years with no late payments and also paying some small credit cards. With a Foreclosures and a BK what is the time frame we would be able to purchase Via FHA?? Just wondering will we be renting forever.
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September 16 2013 - Estero
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Excellent answer from Deborah on this one
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September 16 2013
As the others have said before me, FHA has come out with a "back to work" mortgagee letter but as the letter is properly named, it is more for people that were laid off due to the decline in the economy. From what you are saying it sounds like you will probably have to wait three years from the last foreclosure and two years from ch. 7 discharge date. If I am wrong please free to contact to go over your particular situation further.
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September 16 2013
This can be anywhere for 1-2 years depending on your situation. Also, make sure every payment since the bankruptcy has been on time since lenders will look harder at your payments. I suggest that you speak with a lender like myself who would be more than willing to help you out.

If you have any other questions or need a loan please contact me through the information on my profile page. I hope this helps and good luck!
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September 16 2013
The latest FHA Mortgagee Letter has lowered the seasoning requirement to a minimum of 12 months if you can evidence a reduction of pay equal to 20% or more...and, as a result of things outside of your control. 

This new program opens the door for a lot of people to re-enter the housing market; however, the devil is in the details and the guidelines require a lot of precise documentation...and the talents of a seasoned mortgage professional to put the file together for success through the underwriting process.

In the mortgage industry it is called "packaging a loan"...and it is far more art than science.  I just "saved" a purchase for a borrower who had been declined by another lender...and the only difference was the fact my Team and I answered questions for the underwriter BEFORE the file was submitted.  We went from a declined file to funding in ten days....That is successful packaging!

All my best,

Deborah
NMLS #279125

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September 16 2013
If the deragotory events were the result of at least 20% loss of income, you can apply 12 months after the last derogatory event provided you have completed HUD approved housing counseling at least 30 days before applying.   You will need to demonstrate re-established credit for at least 12 months.

If you don't meet the criteria for the above program (there is more to it than I mentioned, I just highlighted a few points), then the typical waiting periods are 2 years from bankruptcy discharged on Chapter 7, and 3 years from foreclosure.  
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September 16 2013
 
Related Questions
When can you apply for FHA after BK?
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September 16 2013 | 5 answers
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