If I've Had a Bankruptcy in Recent Years, Can I Get a FHA Loan?

Yes, generally a bankruptcy won’t preclude a borrower from obtaining an FHA Loan. Ideally, a borrower should have re-established his or her credit with a minimum of two credit accounts such as a car loan or credit card. A Chapter 7 bankruptcy needs to have been discharged at least two years before applying for an FHA loan. Chapter 13 bankruptcies require documenting a minimum of one year of repayment (no late payments to the Court), and the borrower must obtain permission of the Bankruptcy Court). Also, the borrower should not have any credit issues like late payments, collections, or credit charge-offs since the bankruptcy. Special exceptions can be made if a borrower has suffered through extenuating circumstances, such as surviving a serious medical condition, and had to declare bankruptcy because the high medical bills couldn't be paid.


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