Can I Qualify For FHA Loan After Bankruptcy In California?

This BLOG On Can I Qualify For FHA Loan After Bankruptcy In California Was UPDATED On August 17, 2017

The state of California has one of the fastest growing economies in the United States. California has also took one of the largest hits when the 2008 Real Estate Market And Credit Collapse hit. Home Values and the real estate market in California has since recovered. California has one of the hottest real estate markets in the nation.

  • Home buyers have quickly recovered after the 2008 Great Recession and since 2011.
  • Most areas of California have seen double digit appreciation in home values.
  • Many California state homeowners who purchased homes back in 2010 with FHA Loan After Bankruptcy have seen their home values escalate over 20% plus percent.
  • They are now able to refinance their FHA Loans To Conventional Loans and avoid the annual FHA mortgage insurance premium.

HUD Guidelines On FHA Loan After Bankruptcy In California

A Chapter 7 Bankruptcy is a federal law where consumers can have most of their debts discharged and have a fresh financial start. Dischargeable debts includes the following:

  • Collection accounts
  • Charge off accounts
  • Any type of mortgages
  • All types of revolving and installment debts
  • Repossessions
  • Judgments that is not from a government entity like the Internal Revenue Service

Government loans, such as student loans, tax liens, and other forms of government debts as well as child support payments cannot be discharged through a Chapter 7 Bankruptcy. There are instances where income taxes can be discharged with a Chapter 7 Bankruptcy, however, consumers need to consult with a bankruptcy attorney for advice on legal matters.

How Can I Get A FHA Loan After Bankruptcy In California?

Most consumer derogatory items remains on their credit report for seven years with the exception of Chapter 7 Bankruptcy which will will stay on consumer credit reports for 10 years.

  • However, that does not prevent borrowers from securing a FHA Loan After Bankruptcy in California.
  • Qualifying for a FHA Loan after bankruptcy applies whether it is a purchase home loan or a refinance.
  • Traditionally, a borrower would have to wait at least four years after a bankruptcy to even apply for a mortgage, however, depending on the lender, a borrower can qualify for a home mortgage after 2 years with a FHA loan and 4 years after a Chapter 7 Bankruptcy for a conventional loan.  
  • Gustan Cho and The Gustan Cho Team can help borrowers who have had prior  bankruptcy refinance their mortgage or obtain a new home purchase loan.  
  • Borrowers with a recent bankruptcy and need tips and advice on credit, contact us now and we will work with borrowers on rebuilding credit and targeting a strategy on a goal date to prepare borrower for a mortgage.

Applying For FHA Loan After Bankruptcy

Applying for a Mortgage after Bankruptcy: Borrowers who have a Chapter 7 bankruptcy that has been discharged, even if it buyers do not meet the 2 year waiting period, The Gustan Cho Team has loan programs that may be able to help.

  • We offer NON-QM Loans where there is no waiting period after bankruptcy and/or foreclosure.
  • Bank Statement Loan Programs are now back and are becoming increasingly popular.

We understand that life’s circumstances may have caused you to file for a bankruptcy. In fact, millions of good people like you have benefited from the fresh start that bankruptcy offers. We realize that folks who have had a bankruptcy should not have to wait four long years to enjoy the right of home ownership or to utilize the equity in a home. With this in mind, We have a variety of bankruptcy loan programs designed especially for you!

FHA Loan After Bankruptcy In California Loan Programs:

  • FHA mortgage after bankruptcy available two years after discharge of Chapter 7 Bankruptcy
  • There is a four year waiting period to qualify for a Fannie Mae and/or Freddie Mac Conventional Loan after Chapter 7 discharge in the state of California
  • There is no waiting period after Chapter 13 under HUD Guidelines.
  • There are many lenders in the state of California that require a one or two year waiting period after Chapter 13 discharged date not because of HUD rules but because they have overlays
  • Borrowers can qualify for a FHA Loan After Chapter 13 Bankruptcy discharged date with no waiting period under 2017 HUD Guidelines.
  • Charge offs, collections, liens and judgements does not have to be paid off under FHA Guidelines
  • First time home buyers and current renters who have at least a 580 credit score are eligible to secure a FHA mortgage after bankruptcy with 3.5% down payment in California.

California Home Buyers needing to get qualified for FHA Loan After Bankruptcy In California with a lender with no lender overlays can contact us at 262-878-1965 or email us at gcho@gustancho.com. Please text Gustan Cho for Faster Response. Visit our website at www.gustancho.com or complete our online mortgage application at Apply Now for a pre-approval .

This ARTICLE on FHA Loan After Bankruptcy In California was UPDATE On August 17h, 2017.

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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