Seasoning From Bankruptcy Discharge: 2 Yrs for FHA

We have been seeing a lot of bankruptcies (BKs) lately, so we thought it was time to again mention required seasoning periods from date of discharge.

For Chapter 7 (liquidation) BKs, the seasoning period from discharge is:

2 Years for FHA Financing.

4 Years for Conventional Financing.

Borrowers in a Chapter 13 (reorganization/debt pay off) can jump right from the BK into FHA mortgage financing with a court approval and a timely one-year payment history.

Jumbo lenders require a minimum of 4 years of seasoning, and sometimes longer depending on the investor or lender.

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