I filed Ch7 BK that was discharged in April of 2012. My wife and I are moving to Denver within the next 3 months. Since I have heard of FHA mortages being approved before the 2 year mark but not being able to close until the 2 year mark is reached. My question is, if there is a home that has to built and will take 7 or 8 months to complete can we be apply and be approved 5 or 6 months in advance of that 2 year mark?
Be careful here, the underwriter looks at the time period from your BK filing date to your new loan application date.
If you didn't surrender a home in the BK or lose it to f/c than the min period is 2 years. There are rare exceptions for extenuating circumstances that will allow for less than two years.
The way I understand it, you can still prequalify but you can't actually close till it has been discharged for 2 years.
I have something kind of like this going on, I prequalified but I can't close till April thats when the time is up for the baddie I have.
I got my DU approval, went thru underwriting and approved but my condition was that closing had to be April.