The good news is you can apply for a FHA loan in California only two years after a Chapter 7 bankruptcy. FHA loan requirements only require that you be two years out from Chapter 7 discharge to be eligible for a FHA home loan. For the less common Chapter 13 bankruptcy, it only has to be 12 months since your bankruptcy discharge before you can apply for a FHA loan in California. For a Chapter 13 you also have to have made all your Chapter 13 payments to creditors on time, those payments are included in your debt-to-income ratios to qualify and you have to get an OK from the court to enter into a new home mortgage.
Additionally, after both types of bankruptcies, you must have not had any derogatory credit items after the bankruptcy. This is absolutely key. FHA loan guidelines are very strict about wanting to see NO late payments, collections, judgments, charge-offs, etc… after the bankruptcy. You must show that you have re-established good credit standing with current active trade lines.
And to reiterate, make sure you check the discharge date of your bankruptcy (not the date you filed) as the starting date for the timeline before you can apply for a FHA loan. Give us a call if you are close to this date and we can do a FHA loan application and credit check for you to double check on your discharge date and pre-approve you for a FHA loan in California. Please email at homeloan8@gmail.com or call 858-922-7899 if you have any questions.
Some other highlights of FHA home loans in California:
- You can get a FHA loan three years after a short sale or foreclosure
- FHA loan requirements allow a 55% debt-to-income ratio where conventional loans generally stop at 45%
- FHA loan limits in many coastal California locations such as San Jose, San Francisco, Los Angeles and Orange County allow up to a $729,750 loan amount with 3.5% down payment
Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)
858-922-7899
homeloan8@gmail.com
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