Normally if you have a chapter 7 bankruptcy you just have to wait two years to be eligible for a FHA loan in California. However, if a mortgage is included in that chapter 7 bankruptcy you have to wait three years to get a FHA home loan in California. Some lenders will require you to wait three years from the date the deed of the property included in the bankruptcy is transferred out of your name, others will require you to wait three years from the discharge date of the bankruptcy.
Also, to help qualify for a FHA loan after a bankruptcy 7, make 100% sure you have no derogatory credit AFTER the bankruptcy. FHA loan guidelines can deny you for a FHA home loan if you have been late on any obligations AFTER your bankruptcy 7.
But keep in mind if you had a bankruptcy 7 and there was no mortgage included in the bankruptcy, you only have to wait two years from the discharge of the bankruptcy to qualify for a FHA loan in California.
Here are some of the most up-to-date advantages of FHA loans in California:
- FHA loan limits in California go all the way up to $729,750 in many areas of the state such as Los Angeles, Orange County, San Jose, San Francisco, Alameda and more. And close to this in San Diego.
- FHA loan rates are the lowest since the 1950′s!
- FHA loan down payment is only 3.5% and that can be a gift from a relative
- FHA loan guidelines allow for a non-occupying co-borrower. So if you cannot qualify with your own income, perhaps you have a relative that can help.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (FHA, VA, USDA and conventional loan specialist)
858-922-7899
Related posts:
- Qualify FHA Loan 2 Years After Chapter 7 Bankruptcy
- Short Sale? Foreclosure? Bankruptcy? Impact On Your Credit Score and Getting an FHA Loan
- Is it feasible to get home equity loans after bankruptcy?
- Update on New California Home Buyer Tax Credit – Perfect For Those Who Qualify FHA Loan
- FHA Loans & Bankruptcy – Can I Get Approved?
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