Bankruptcy Chapter Seven and FHA Loans
The deep dive our economy took in 2007 and the following years sent many people into a tail spin with their finances. Many are now just now recovering and are trying to return to their live style prior to this period. The price of houses still remains affordable and coupled with the low interest rates; it is enticing to those who wish to become a homeowner, and those who wish to return to homeownership.
However, if you or your spouse filed a chapter 7 bankruptcy to save yourselves financially, and are now considering owning a home. Here are the basic requirments needed to make application for a FHA loan:
1. A minimum of two years must have elapsed since the discharge date of the borrower and or the spouse’s Chapter 7 Bankruptcy. The key words here are discharge date. This is not the filing date, but the date the 7 was discharged.
2. A letter with a full explanation regarding the Chapter 7 is required to be presented along with the loan application.
3. The borrower must have re-established good credit.
4. The borrower must be able to quality financially
5. The borrower must have a stable job.
Be sure and check with a lender for any additional requirements.
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