Here are the rules regarding previous bankruptcies’ impact for a new FHA loan ($271,050 max loan amount) .
What are the credit re-establishment requirements my borrower must meet if they have had a foreclosure or bankruptcy and they want to do an FHA loan?
Bankruptcies
(Chapter 7) Fully discharged at least 2 years
Schedule of debtors and discharge forms unless credit report provides discharge date
The borrower must have re-established good credit or chosen not to incur new credit obligations. The borrower also must have demonstrated a documented ability to responsibly manage his or her financial affairs.
No delinquent credit after bankruptcy
Detailed credit explanation
(Chapter 13) 1 full year timely payments made
Trustee approved
No delinquencies
Detailed credit explanation
Foreclosures / Deed in Lieu Released at least 3 years
Detailed credit explanation
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