Awesome Hank

Tips on Getting an FHA Loan Approved after a Grueling Bankruptcy

If you’re ever looked into buying your first home, you know that FHA loans are the way to go. The terms are agreeable, the rates are more favorable, and the down payments are less than conventional loans. The loan limits have increased over the years to make FHA loans a way for most homeowners to afford their first home.

By now we all know people who have been through a foreclosure and/or bankruptcy, victims of a mortgage and real estate bubble that has burst.Many families have been affected by the economy’s downturn. Jobs have been lost, family homes have been repossessed by lenders, making families homeless. In this time of real estate uncertainty, it’s important to know your options. Also, knowing whatopportunities lie ahead in regards to the home loans that are available more important that ever. This article lists the requirements for getting an FHA loan after having a bankruptcy.

It’s possible for people who have had both bankruptcies and foreclosures in their past to get FHA loan. Here are some of the restrictions; the borrower or borrowers have to have a nearly perfect credit history since the foreclosure or bankruptcy. FHA loans are also subject to normal qualifying guidelines with income and debt limitations.

If you’ve had a Chapter 12 Bankruptcy, you’ll need 12 consecutive months of on time payments on every account. This includes credit cards, cell phone bills, utilities and everything else from the time of the bankruptcy. If you’ve had a Chapter 7 Bankruptcy, you’ll need at least 24 months of perfect credit from the bankruptcy disposition. People with Foreclosures need to have at least 3 years of perfect credit from the time of the foreclosure.

Loan approval, especially FHA insured loans can be difficult.It is highly recommended that you speak an FHA specialist to determine your eligibility prior to investing your time viewing properties.

Want to learn more about Palm Springs real estate? Visit Kevin’s site to see a list of his Palm Springs real estate agents.

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Posted in Real Estate · November 18th, 2009 · Comments (0)

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