Bankruptcy: Chapter 7

- Discharged 2 years from the date of closing.

Must re-establish long-established credit or have chosen to No new loans and commitments should incur no

derogatory credit after the bankruptcy to the requirements for an FHA mortgage.

Bankruptcy: Chapter 13

-Filed before the filing date.

-If bankruptcy is seasoned less than 24 months, the bankruptcy trustee must be a

acceptable Repayment history for the duration of the bankruptcy.

Must re-establish long-established credit, or chose not to impose any obligations on new loans and have no

derogatory credit after bankruptcy.

Consumer Credit Counseling (CCC)

-The borrower must complete CCC prior to the filing.

A satisfactory payment history must be included in advising the Agency in the file when

the completion of the CCC is seasoned less than 12 months.

Must re-establish long-established credit or have chosen to create any new credit obligations.

  Foreclosure

Must-seasoned a minimum of 3 years.

Credit Review on

A Approve / @ Eligible collections:

- Are collections do not have to paid if they about DU is required. Outstanding

Collections may be required to be paid if the underwriter determines they have the

Potential a lien and the impact of the borrower = s ability to repay the FHA mortgage.

  Credit Review on

A Refer / Eligible @ collections:

- Give collections a borrower = s notice for credit obligations and must be considered in the analysis of creditworthiness into account. To qualify for a mortgage applicant with collections examined during the past 24 months, an acceptable credit risk, the insurer must be able to judge that the collections not to a disregard for the financial Obligations or the inability rested in a timely payment.