FHA Mortgages with Chapter 7 Bankruptcy
Even with a Chapter 7 bankruptcy in your past, our FHA loan programs can still help you refinance your existing property or purchase a new property.
Here are the general guideline requirements for borrowers seeking an FHA mortgage after a Chapter 7 Bankruptcy:
- Chapter 7 bankruptcy must be discharged for (2) two years or more upon date of funding
- Credit must be re-established after bankruptcy discharge and in good standing - no evidence of credit abuse
- Provide letter of explanation (LOE) with loan application describing reasons for bankruptcy and the measures put in place to avoid in the future
- Borrower must still qualify in all other areas, including job history and income requirements
With a non-FHA, conventional mortgage program, you generally have to wait 4 years after your discharge before you can qualify for a new loan - and you normally pay a higher rate and require more money down.
If you filed for Chapter 13 bankruptcy, please read about the Chapter 13 bankruptcy FHA program.