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Financing After a Bankruptcy – Seasoning

We have been getting borrowers with recent bankruptcies asking about financing after a bankruptcy. Fortunately, FHA is very forgiving when it comes to bankruptcies.

A Chapter 13 BK requires NO seasoning after 12 months of timely payments into the BK.

Chapter 7 & 11 BKs require 2 years of seasoning in most cases, or 1 year with “extenuating circumstances” (must be documented and severe).

Conventional Financing requires 4 years of seasoning in most cases, or 2 years with “extenuating circumstances”.

In all cases, borrowers must re-establish credit AFTER a BK (with “secure cards”, car loans, etc.).

Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646