Monthly Archives: April 2014

After I file bankruptcy, how long will it take before I can buy and finance (FHA) a home?

Chapter 7 = Two years and four months.  That’s it!

Chapter 13 = maybe a year, maybe a lot longer.

fha

According to current FHA guidelines:

After Chapter 7 bankruptcy, (not to be confused with Chapter 13 bankruptcy rules) the borrower must wait out the FHA’s minimum “seasoning” period. At the time of this writing, that period is two years plus any additional amount required by the lender. Some banks will require that a borrower wait a total of three years before applying for a new home loan.

Other lenders may be willing to work with qualified borrowers after the FHA two-year minimum for Chapter 7, but it is important to note that the required waiting period begins from the time the bankruptcy is discharged–NOT the time the bankruptcy is filed.

Here is some additional information on waiting periods and other requirements for both Chapter 13 and Chapter 7 bankruptcy:

CHAPTER 13 BANKRUPTCY WAITING PERIODS

FHA rules allow a lender to consider approving an FHA loan application from a borrower who is still paying on a Chapter 13 Bankruptcy-but only if those payments have been made and verified for a period of at least one year.

(This is taken from “FHA Loan Rules for Borrowers After Filing Bankruptcy” at https://www.fha.com/fha_article?id=305).

Basically, you need to wait two years from the date of your chapter 7 discharge.  You generally get a discharge at month 4 of your case, so a safe number is 2 years and 4 months after you file a chapter 7.

With chapter 13s, the numbers are not well-defined, which makes it much harder.