- Generally, FHA mortgages are available two years after the date your bankruptcy was discharged. In some cases, you may even be able to get a mortgage as early as one year after the discharge. To do this, you must show that the bankruptcy was due to extreme circumstances beyond your control and prove that you are managing your financial situation to the point that you will probably not experience the same problems again.
- In all cases with FHA mortgages, your credit score must be 580 or above for you to qualify for the maximum FHA authorized loan amount, which varies depending on where the home is located. If your credit score is above 500, you qualify for mortgage financing at no more than 90 percent loan to value ratio. This means that you must contribute at least 10 percent of the value of the home as a down payment. If your score is below 500, you will not qualify for FHA financing. FHA qualifications are generally much more lenient than conventional mortgage guidelines.
- You may qualify for a streamlined FHA refinance, depending on several factors. The purpose of a streamlined mortgage refinance is to reduce the amount of paperwork required to close the loan and to make the overall process simpler. Your mortgage must already be FHA insured, and it can not be past due. The refinance must result in a lower payment for you, and you cannot take any cash out of the loan proceeds. Streamlined refinances allow you to roll closing costs into the loan as long as there is enough equity in your home to support this.
- An FHA mortgage will probably be your best option for a mortgage after bankruptcy in the short term. Conventional mortgages are subject to Fannie Mae and Freddie Mac guidelines, which call for you to wait at least four years after a bankruptcy discharge or dismissal before you can get a conventional mortgage. Generally, conventional mortgage loans have stricter requirements for credit scores as well.
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