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FHA Loan After Filing Bankruptcy
Can I qualify for an FHA loan after filing bankruptcy?
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This discussion was modified 3 months, 4 weeks ago by
Sapna Sharma.
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This discussion was modified 3 months, 3 weeks ago by Sapna Sharma.
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This discussion was modified 3 months, 4 weeks ago by
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1 Reply
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Yes, after declaring bankruptcy, you qualify for an FHA loan. However, there are waiting periods which are prescribed for the type of bankruptcy:
Chapter 7 Bankruptcy:
Waiting period: You must wait two years after the bankruptcy is discharged before applying for an FHA loan.
Exceptions: Noty, some of the time, is the stated rules you must adhere to, but ignored red. If you have the requisite documents, you may be permitted to qualify after one year if that particular individual can demonstrate that the bankruptcy was due to external factors within that time frame. These factors include getting fired from work, excessive medical expenditures, or even being a widow. You must also show that you avoided incurring debts through reckless spending before that period.
Chapter 13 Bankruptcy:
Waiting period: Qualifying for the FHA loan is possible, even under a Chapter 13 repayment plan, also known as the debt adjustment plan. You must provide sequential evidence of timely payments for 12 months and the judge’s consent to take a loan.
Discharged Chapter 13: For those who have had their Chapter 13 bankruptcy discharged, the universal rule is to stay calm for 12 months, counting from the discharge date.
In both scenarios, lenders will analyze your credit history post-bankruptcy, looking at aspects such as good financial behavior, income history, and DTI, among other important predecessors and affluents of your primary mortgage loan.
Please feel free to ask if you have any questions about how these options would work in your case.