FHA Loan after Chapter 13 discharge

[Anonymous]

Does anyone know what the new law is for the FHA waiting period after you are discharged from Chapter 13?  We are trying to buy a house and we were discharged from Chapter 13 8/13/09.  We had two different underwriters tell us back in May of this year that due to new laws we have to be discharged 2 years before we can qualify for FHA and 5 years before we can qualify for conventional.  We are talking to another bank right now and they are telling us it shouldn't be a problem.  I just want to put this bankruptcy behind me and move on.  Can someone help?  What bank(s) should I be talking to?

[guiness56]

This is directly from the FHA website:

CHAPTER 13 BANKRUPTCY

FHA will consider appoving a borrower who is still paying on a Chapter 13 Bankruptcy if those payments have been satisfactorily made and verified for a period of one year. The court trustee's written approval will also be needed in order to proceed with the loan. The borrower will have to give a full explanation of the bankruptcy with the loan application and must also have re-established good credit, qualify financially and have good job stability

[Anonymous]

Great guiness - nothing like going right to the source for good solid info.

Guiness' post confirms our experience - we were able to look at refinancing our mortgage while still in BK 13, but didn't like the numbers.  We discharged in 2/09 and refinanced in, I think, 9/09.  No problems - great rate.

[Anonymous]

When buying  home after Bankruptcy, the following is needed:

1. Bankruptcy Discharge letter

2. 2-3 established tradelines ( can be alternative credit i.e.. Utility bills, Cell phone, Auto insurance)

The length of time since the bankruptcy is not a factor since it was been discharged.  The requirement is that the Bankruptcy file date must  be at least 12 months ago.  Therefore, since you are discharged, I am sure that it has been at least 3 to 5 years. 

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