Can I get a FHA home loan with 622 credit and a bankrupcy 3 months old?
I filed a bankrupcy this year, and the official close date was June 11th 2012. I was only $10,000 in debt, and didn't file on a house. I now have no debt what so ever. I make about $30,000 a year, and am looking to buy a house that is listed for $74,900. Just wondering if I should get my hopes up or not.. We are tired of renting and having to live with people in the same house.
- BobLv 68 years agoFavorite Answer
FHA will require two years after discharge of a Chapter 7 bankruptcy unless it was due to extenuating circumstances such as the death of a wage earning spouse. The link below confirms this. Your only option until then will be a cash purchase or private financing. Conventional financing will require at least three years.
You now have about 22 months to get your finances in order so you can qualify to finance a home when the required time has passed. You will need to have re-established credit and no late payments in order to qualify. While FHA will accept a 622 credit score, most lenders have their own guidelines in addition to FHA and will require at least a 640 score to qualify. Your score won't improve without having some open credit, but that does not mean you need to owe a lot. If you have no open charge accounts you should get at least one and preferably two and use them just for small amounts and pay the balance in full each month. Having available credit improves your score, while having maxed out or over limit accounts will hurt. If you have difficulty getting approved there are cards available that can be secured by your own funds. You should also use this time to build your savings as much as possible. Making consistent, regular deposits to your savings will demonstrate to an underwriter that you have the ability to make payments and provide funds you will need for your down payment and closing costs.Source(s): Licensed Loan Officer in Ohio
- Calvin CLv 78 years ago
I really hope you are not asking seriously I know the required education for bankruptcy is a waste of time but this issue was covered at least 3 times. You are not going to get a mortgage for at least 2 years and likely 5 years.
- Anonymous8 years ago
It will take at least 3 years before you can get any type of financing.Source(s): Retired bill collector 35 years