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Out of BK and Into Mortgage With No Seasoning; Bankruptcies

Borrowers in a Chapter 13 Bankruptcy can obtain FHA mortgage financing immediately out of the bankruptcy with no seasoning. They need to have been in bankruptcy for over one year, and they need to have a perfect history of payments to the BK Trustee.

One of our competitors has been touting “BK Buyouts” (the above scenario) as a unique loan product. We commend our competitor’s ingenuity, but such products have been around for many years.

Chapter 7 and 11 Bankruptcies require perfect credit history after the BK, and two years of seasoning from discharge before a borrower can obtain FHA financing.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646