I know that the standard guidelines for qualifying for a conventional mortgage after BK7 is 4 years. But I read somewhere ( I believe it was on NoLo) that if circumstances beyond your control are the reason for filing for BK, then it lowers that period down to 2 years. Divorce was listed as one of those reasons and I am in the process of such.
Does anybody know this to be true?? And if so, any details. For example, I live in NC and there is a mandatory year separation period before the divorce can be filed. Would I have to wait to file for bankruptcy until AFTER the divorce to use this as the unseen hardship?
Yes, you can qualify for FHA after 2... actually sometimes one year with enough down payment.
It's possible to qualify for an FHA loan after a bankruptcy filing. Depending on the circumstances, there might be a waiting period of 12 months to two years from the discharge date. After that period of time, an eligible borrower could get an FHA-insured mortgage loan to buy a house.
Thanks for the reply. Yea, im aware of being eligible for an FHA loan. That's not what I was asking. This is about the conventional mortgage guidelines. Since the mortgage insurance never drops off FHA loans....I cant fathom why anybody would ever want one.
Because they're easy to get, and after the loan drops below 80% LTV through payments and/or appreciation you can refi. And if you can get a conventional mortgage that soon after a Ch.7 the rate would be higher, cancelling any benefit of no PMI after 80% LTV.
And not to get polical or belittle NC, but sheesh, there is a mandatory year separation period before the divorce can be filed in NC???? I'd take a weekend in Vegas, instant divorce.
Different lending companies have additional underwritting rules so it varies. Usually the general consensus is 2 years for FHA and 4 years conventional. FHA is fine to get started as others have said, you can refinance after 80% LTV.