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?
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
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.
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.