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FHA after bankruptcy

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Anonymous
Not applicable

FHA after bankruptcy

Realistically, what can I expect after bankruptcy? We are hoping to get an FHA loan as soon as 1 year post-discharge (usually two years, but our circumstances should qualify us for 1 year wait time).

I’ve already started rebuilding with a secured loan and a secured credit card.

What’s a credit score I could reasonably aim for within 1 year?

How bad are rates after bankruptcy? My husband didn’t file with me, and his score is still in the 800s, but it looks like based on where we live, I too will need to be on the loan.
Message 1 of 34
33 REPLIES 33
Anonymous
Not applicable

Re: FHA after bankruptcy

@20SOMETHINGINTHEREALWROLD -

 

Good Morning,

 

I'm assuming you've been discharged already as I see you have a secured credit card and loan.  Look up the AZEO method on the forums, it's the method I plan on using once I'm 30-45 days post my discharge date.  See if you can be added as an AU on your husbands accounts (looking at your signature you may have already done that), that will also help your scores.  Where are you located?  

Message 2 of 34
Anonymous
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Re: FHA after bankruptcy

That signature is from 2014 when i first joined the forums... I don't know how to change it, haha.  I actually had more cards and higher limits prior to bankruptcy, but all those cards are wiped out now. I will look that up.  My husband only has 1 credit card from his credit union and they don't add authorized users unforunately. 

Message 3 of 34
Anonymous
Not applicable

Re: FHA after bankruptcy

So you're already discharged ?

 

Message 4 of 34
Anonymous
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Re: FHA after bankruptcy

Figured out how to update my signature. Smiley Happy

No, still have a couple of weeks.  The trustee told me she declared it a no asset case and the expected date of discharge.  There haven't been any hiccups, so I was told it was fine to start rebuilding. Hope I didn't mess that up.  Everything I have is secured and refundable, though, not a true credit line. 

Message 5 of 34
Anonymous
Not applicable

Re: FHA after bankruptcy

To give you an idea of a year out from bk7, my EX mortgage score is 679. But not sure of the EQ and TU scores.  My current fico 8 scores are in my sig. So they have gone up, my Fico 8 scores right after discharge were 490-550.

 

My DH filed with me and his EX mortgage is the same at 679 (again don't know the other 2 bureaus), but his Fico 8 scores are higher than mine, about 670-680.

 

Of course YEMV.

Message 6 of 34
Scupra
Super Contributor

Re: FHA after bankruptcy

Getting an FHA that soon after discharge will not be easy. There is a way to get it done, but you must meet many requirements. It would make more sense to set your goal to an FHA in 2 years. Good luck! 

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
801 EQ FICO 06/2022
797 TU FICO 04/2022
793 EX FICO 04/2022
$30k NFCU Platinum | $30.7k NFCU cashRewards Sig | $15k NavChek | $7.1k Cap1 Quicksilver | $10k Amazon Store | $19k Cap1 VentureOne | $16k Barclay Aviator | $5k Chase Freedom | $5k Chase Sapphire Preferred | $9k Costco Visa | $20k AMEX BCE | AMEX Gold | NFCU Platinum #2 $19.3k | Apple $8.5k
Message 7 of 34
Anonymous
Not applicable

Re: FHA after bankruptcy

Can you give me an idea of the requirements? I was told the cause of bankruptcy would allow us 1 year instead of the normal 2 years but nothing else.
Message 8 of 34
Tuscani
Moderator Emeritus

Re: FHA after bankruptcy

I have heard 12 months like you describe if you can prove that extenuating circumstances lead to bankruptcy, such as the death of your household's primary wage earner or a serious and long-term uninsured illness. The FHA considers an extenuating circumstance an event that is beyond the borrower's control and unlikely to recur. I believe the down payment requried is also considerably larger. 

Message 9 of 34
Scupra
Super Contributor

Re: FHA after bankruptcy


@Anonymous wrote:
Can you give me an idea of the requirements? I was told the cause of bankruptcy would allow us 1 year instead of the normal 2 years but nothing else.

HUD states, "the borrower can show that the bankruptcy was caused by extenuating circumstances beyond his or her control and has since exhibited a documented ability to manage his or her financial affairs in a responsible manner." 

 

Now, finding a lender that will do it is going to be the hardest part. Most lenders are wanting 2-3 years post discharge. 

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
801 EQ FICO 06/2022
797 TU FICO 04/2022
793 EX FICO 04/2022
$30k NFCU Platinum | $30.7k NFCU cashRewards Sig | $15k NavChek | $7.1k Cap1 Quicksilver | $10k Amazon Store | $19k Cap1 VentureOne | $16k Barclay Aviator | $5k Chase Freedom | $5k Chase Sapphire Preferred | $9k Costco Visa | $20k AMEX BCE | AMEX Gold | NFCU Platinum #2 $19.3k | Apple $8.5k
Message 10 of 34
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