FHA Approval? BK discharge 2 yrs, great credit since....

[Anonymous]

Hi Everyone,

Thank you so much for any help you can provide.   Do you think we can get approved now for FHA?  Does putting more down help with an FHA approval or is 3.5-5% ok?  I have heard some lenders may do 2 yrs post BK and some want 3.  Is that true?  Any idea on lenders or credit unions to try?

Bk 7 discharged 2 yrs ago.

Total income  for 2;  110k

monthly debt; 900

Scores;

me--  equifax  622

wife-- experian  640

Wife also has a foreclosure from 3 years ago which was included in the BK.

[ShanetheMortgageMan]

FHA just requires 2 years discharge on a Ch 7 BK, but 3-years from a foreclosure.  

You'll need to find out the date of the trustee/sheriff's/foreclosure sale to begin the foreclosure seasoning requirement.  It's not when the foreclosure proceedings begin, it's when the foreclosure proceedings end and the home is legally taken back by the mortgage lender.  You can call up your mortgage lender and ask them directly when they foreclosed on the home,and they can send you something in writing confirming that, or you can contact the county recorder's office where the home was located and ask when the final foreclosure sale deed was recorded (I'd recommend you do both).

If it has been 3 years since the foreclosure sale, and 2 years since the BK discharge, then in order to qualify for FHA financing you'll also need 12 months of re-established credit over 3 trade lines (not all 3 have to be 12 months old) as well as no new non-medical late payments or delinquent accounts since.

Were you on the home mortgage included in BK/foreclosed on?  If not, then the foreclosure seasoning wouldn't apply to you, just your wife.  So if that is the case, and it hasn't been 3 years since the foreclosure, then it may be possible for just you only to go on the new FHA loan and be able to qualify.

[Anonymous]

Shane is correct, make sure that you have no late's, collections, etc. after the bankruptcy, because we just got denied an FHA loan, and I was the only one that filed an bankrupcty not my husband, but because I was the primary on the loan I guess they looked at me as being the major factor. We had our 5% down payment, and everything.