We are revisiting Bankruptcy (BK) seasoning requirements b/c we are asked so often:
For Chapter 7 (liquidation) BKs the seasoning is 2 years from discharge for FHA financing and 4 years from discharge for Conventional Financing.
For Chapter 13 (reorganization) BKs, the seasoning is 4 years from discharge for Conventional Financing.
But for FHA financing, borrowers need NO seasoning after a Chapter 13 as long as there is a 1-year payment history into the BK (to the BK Trustee) and the BK approves the BK exit and home purchase. Borrowers can jump out of Chapter 13 and into a mortgage.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646