FHA loans have very flexible underwriting however, there are some basic guidelines credit requirements that are almost universally required by the majority of lenders.*
The minimum credit score depends on your down payment.
3.5% down = 580+
10% down= 500+
It is also possible to qualify for loan if you do not have a credit score due to lack of credit history. Loans without credit scores require that alternative credit be presented i.e. utility payments, phone, rent, etc.
Generally the requirement is 2 years from discharge date.
It is possible to qualify for a mortgage in less than 2 years if the bankruptcy was filed due to extenuating circumstances (those outside of your control such as unemployment or medical bills not covered by insurance) AND you have rebuilt your credit. Divorce is NOT considered to be an extenuating circumstance
If the bankruptcy has been completed and discharged, there is no waiting period.
If the bankruptcy has NOT been discharged, you must show that you have made at least 12 consecutive on time payments. You will also need to obtain the approval from the court to enter into new debt.
The standard waiting period is 3 years from the date that ownership is transfered.
Exception: The waiting period may be waived there were NO late payments (30 days or more) on any installment loans (mortgage, auto, student loan etc) during the 12 months preceding the short sale.
*This overview is not all inclusive and does not include all guidelines or potential qualifying situations. Contact us or your lender for additional information that applies to your situation.
Laura Borja | Senior Mortgage Consultant | NMLS#199107
Cell: (619) 992-4061
27271 Las Ramblas ste 150 Mission Viejo CA 920691
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Ocean Lending Home Loans Inc. NMLS ID #1626788 (www.nmlsconsumeraccess.org). 27271 Las Ramblas ste 150 Mission Viejo CA 92691 (888) 508-5030. All rights reserved. This is not an offer to enter into an agreement. Information, rates, & programs are subject to change without prior notice and may not be available in all states. All products are subject to credit & property approval. Ocean Lending is not affiliated with any government agency. Licensed by the Dept of Business Oversight under the California Residential Mortgage Lending Act License # 41DBO-76602 and Finance Lenders Law Lic # 60DBO71981