In this blog, we will cover and discuss qualifying for an FHA loan after bankruptcy in California with bad credit. The state of California has one of the fastest-growing economies in the United States. California 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 have since recovered. California has one of the hottest real estate markets in the nation. Home values in California today are at historic highs with demand surpassing inventory.
How Long After Bankruptcy Can I Buy a Home in California?
Gustan Cho Associates government and conventional loans with no lender overlays. Besides government and conventional loans, Gustan Cho Associates has countless mortgages after bankruptcy with no waiting period requirements. Government and conventional loans are FHA, VA, USDA, and conventional loans. FHA, VA, USDA, and Conventional loans have waiting period requirements after the bankruptcy of two to four years after discharge. Non-QM mortgages one day out of bankruptcy have no waiting period requirements but require a 20% to 30% down payment.
Buying a House After Bankruptcy in California During Competitive Housing Market
Homebuyers 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 by over 20% plus percent. They are now able to refinance their FHA Loans To Conventional Loans and avoid the annual FHA mortgage insurance premium. In this article, we will cover and discuss qualifying for an FHA loan after bankruptcy in California with bad credit. We will also cover qualifying for an FHA and VA loan during and after Chapter 13 bankruptcy with bad credit.
How Long Do You Have To Wait To Buy a House After Chapter 7 Bankruptcy in California?
There are two different types of bankruptcy: Chapter 7 and Chapter 13 Bankruptcy. There is a two-year waiting period after discharge date to qualify for an 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 include the following:
- Collection accounts
- Charge off accounts
- Any type of mortgages
- All types of revolving and installment debts
- Judgments that are 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.
Can I Buy a Home in California With Bad Credit In California?
Most consumer derogatory items remain on their credit report for seven years with the exception of Chapter 7 Bankruptcy which will stay on consumer credit reports for 10 years. However, that does not prevent borrowers from securing an FHA Loan After Bankruptcy in California. Qualifying for an FHA Loan after bankruptcy guidelines is the same for a home purchase or a refinance.
What Is The Waiting Period To Be Eligible To Buy a House With an FHA Loan After Bankruptcy in California?
Government and conventional loans have a mandatory waiting period after bankruptcy. HUD, the parent of FHA, requires homebuyers to wait two years after Chapter 7 bankruptcy to qualify for an FHA loan after bankruptcy in California. VA loans require a borrower can qualify for a VA loan after 2 years of the discharge date. There is a 4 year waiting period after a Chapter 7 Bankruptcy to qualify for a conventional loan.
What Is The Waiting Period To Be Eligible To Refinance With an FHA Loan After Bankruptcy in California?
The waiting period requirements after bankruptcy on government and conventioinal loans are the same for purchase and refinance transactions. Gustan Cho Associates can help borrowers who have had prior bankruptcy refinance their mortgage or obtain a new home purchase loan. Borrowers with a recent bankruptcy can qualify for FHA, VA,non-QM, and conventional loans after bankruptcy. 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 borrowers for a mortgage. Non-QM and non-prime loans do not have any waiting period after bankruptcy to be eligible for home purchase and refinance mortgages after bankruptcy.
How Do I Apply For an FHA Loan After Bankruptcy in California?
Applying for a Mortgage after Bankruptcy: Borrowers who have a Chapter 7 bankruptcy that has been discharged, even if its buyers do not meet the 2-year waiting period, The team at Gustan Cho Associates 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.
Will My Credit Scores Increase While Waiting For The Waiting Period Requirements To Qualify For a Mortgage?
We understand that life’s circumstances may have caused you to file for 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 homeownership 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 Loan Programs
FHA mortgage after bankruptcy is available two years after the 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.
FHA Loan During And After Chapter 13 Bankruptcy Guidelines in 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 the Chapter 13 discharge date, not because of HUD rules but because they have overlays. Borrowers can qualify for an FHA loan After the Chapter 13 Bankruptcy discharge date with no waiting period under HUD Guidelines.. Charge offs, collections, liens, and judgments do 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 an FHA mortgage after bankruptcy with a 3.5% down payment in California. California Homebuyers needing to get qualified for FHA Loan After Bankruptcy In California with a lender with no lender overlays can contact us at 800-900-8569 or text for a faster response. Or email us at email@example.com. Visit our website at www.gustancho.com or complete our online mortgage application at Apply Now for a pre-approval.
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May 25, 2022 - 5 min read