203b Loans Previous Bankruptcies

Previous Bankruptcies and 203b Loans: What You Need to Know

Previous Bankruptcies and 203b Loans: What You Need to Know

In general, if you’ve been involved in a bankruptcy, an FHA home loan may be easier to acquire than conventional home financing. FHA rules state that Chapter 7 bankruptcies are not a disqualifying factor from getting an FHA loan “if, at the time of case number assignment, at least two years have elapsed since the date of the bankruptcy discharge,” and, during that period, the borrower has re-established good credit and has not taken on additional credit.