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Can I Get An FHA Mortgage After a Bankruptcy?

Posted on in Bankruptcy

If you're looking to get a mortgage through the Federal Housing Administration, there are several important factors to consider. FHA will review your credit history in order to determine what kind of a loan risk you are, but it is possible to get an FHA mortgage even if you have previously filed bankruptcy. Learn more about the stipulations attached to this guideline by talking to your bankruptcy attorney.

If you have filed Chapter 13 bankruptcy, you must have been making payments on your payment plan for at least one year. FHA does not guarantee approval of such an application, but they will consider it with the written approval of the court trustee. When the loan application is sent in, the borrower is responsible for providing a full explanation of the circumstances of his or her bankruptcy. As expected, the financial background of the individual is explored and it must be clear that the individual has good job stability. Finally, good credit must have been established by this borrower in order for the agency to consider starting a mortgage.

If you filed Chapter 7 bankruptcy, you must wait at least two years since the discharge date to apply for an FHA loan. Note that this refers to the discharge date rather than the bankruptcy filing date since these are actually two separate occasions, so verify that you have waited the full 24 months before submitting an application. As with any mortgage application, the FHA wants to see that an applicant has a stable job, has established good credit since the bankruptcy, and that he or she meets the financial qualifications of obtaining a loan.

Filing bankruptcy might allow you to get a fresh start in life without jeopardizing your future ability to get an FHA loan to buy your home. If you want to learn more about how bankruptcy can help you, contact an Illinois bankruptcy attorney today.

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