FHA’s Two-Year Rule for Discharged Bankruptcies

FHA requires only two years of seasoning from the date a bankruptcy is discharged. This is relatively well-known.

What is not well known is that borrowers in a Chapter 13 bankruptcy do not need any seasoning to qualify for FHA financing, as long they have a one year history of timely payments to the bankruptcy trustee and a court approval for the FHA financing.

Financing While Still in Chapter 13

Once a borrower gets his Chapter 13 discharged, he has to wait for the full two years of seasoning to get financing in most cases. Such borrowers are usually much better off trying to get financing while still in the bankruptcy when they can still get court-approval.