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.
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