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
