Bankruptcy and FHA Mortgage

[paul]

I went through Chapter 7 with a discharge date of June 2013. I have a FHA loan on my current home that I have continued to pay on time. I have a new job and have to move to another state. Would I qualify for another FHA loan? I am a little confused on eligibility for a second FHA loan. I plan to rent out my current home.

Current home: 10% equity, FHA loan. 

Salary: 90K.

Credit Score: 709, with one late payment 3 years back on a CC(30 days).

[Anonymous]

You can only have 1 FHA mortgage at a time.

[frugalQ]

actually, you can have two FHA loans as long as you meet certain exemption requirements.  You should be able to find them on FHA website.

[Anonymous]

FHA rules for BK is two years from discharge date.

FHA loans are typically for owner-occupied primary residence only. Exceptions are made if your family has grown too big for the current house, if you are required to take on a commute that is unreasonable for your residence, if you are a non-occupying co-borrower, or if you are vacating a jointly owned property.

Otherwise, you will either have to refi your current FHA into a conventional loan or use a conventional loan for your new home.

Hope this helps!

[DaveInAZ]

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@Anonymous wrote:

FHA rules for BK is two years from discharge date.

FHA loans are typically for owner-occupied primary residence only. Exceptions are made if your family has grown too big for the current house, if you are required to take on a commute that is unreasonable for your residence, if you are a non-occupying co-borrower, or if you are vacating a jointly owned property.

Otherwise, you will either have to refi your current FHA into a conventional loan or use a conventional loan for your new home.

Hope this helps!

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He said his Ch7 BK was discharged in June 2013, so he needs to wait until after 6/17 for a conventional mortgage. They can allow a coventional mortgage after 2 years, but only for "extenuating circumstances", but that has to be something significant, like a major medical event that prevented them from working and caused high medical bills. But that unreasonable commute should work ffor a 2nd FHA mortgage as he said he's moving to another state for a job. 

[Anonymous]

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@DaveInAZ wrote:

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@Anonymous wrote:

FHA rules for BK is two years from discharge date.

FHA loans are typically for owner-occupied primary residence only. Exceptions are made if your family has grown too big for the current house, if you are required to take on a commute that is unreasonable for your residence, if you are a non-occupying co-borrower, or if you are vacating a jointly owned property.

Otherwise, you will either have to refi your current FHA into a conventional loan or use a conventional loan for your new home.

Hope this helps!

---

He said his Ch7 BK was discharged in June 2013, so he needs to wait until after 6/17 for a conventional mortgage. They can allow a coventional mortgage after 2 years, but only for "extenuating circumstances", but that has to be something significant, like a major medical event that prevented them from working and caused high medical bills. But that unreasonable commute should work ffor a 2nd FHA mortgage as he said he's moving to another state for a job. 

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Correct . I should have summarized my response!

[DallasLoanGuy]

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@paul wrote:

I went through Chapter 7 with a discharge date of June 2013. I have a FHA loan on my current home that I have continued to pay on time. I have a new job and have to move to another state. Would I qualify for another FHA loan? I am a little confused on eligibility for a second FHA loan. I plan to rent out my current home.

Current home: 10% equity, FHA loan. 

Salary: 90K.

Credit Score: 709, with one late payment 3 years back on a CC(30 days).

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You can rent it. But you will still need to qualify for both loans. You don't have 2yrs landlord experience to allow for rent receipts to offset the mortgage payment on the current loan.

FHA DOES ALLOW for a second FHA loan if you move far enough away that a commute is not reasonable.

So the loan wasnt included in BK? And always paid on time?

[ezdriver]

Was the current FHA loan post discharge or was it discharged? I did not see it in any of the posts ... but I'm not as good [visually] as I once was.

[paul]

It was discharged in the BK, meaning I agreed to make payments and keep the home.