How soon after a chapter 7 can I get a conventional mortgage loan?

[Mrodgers]

I’m looking at buying a condo in 2-3 years, if possible. My bankruptcy discharge was last May. Has anyone had any success securing a conventional home mortgage loan in under four years?

[justbroke]

Conventional for a Chapter 7 is at least 4 years from discharge. FHA now allows condos this year (since late 2019). FHA is 2 years. See the Fannie Mae criteria for Derogatory Credit. Fannie does have an "extenuating exception" criteria, but I have learned that very very very few people have something that meets the criteria. Likewise FHA also has extenuating circumstances if more than 12 months and less than 2 years. But, those extenuating circumstances are very very specific and very difficult to meet (my broker said they never had anyone pass underwriting with extenuating circumstances because it usually requires death of the wage earner).

FHA condos do have restrictions and they have a page, I think, where you can determine if the condo meets the criteria.

https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B3-Underwriting-Borrowers/Chapter-B3-5-Credit-Assessment/Section-B3-5-3-Traditional-Credit-History/1736871181/B3-5-3-07-Significant-Derogatory-Credit-Events-Waiting-Periods-and-Re-establishing-Credit-08-07-2019.htm

[Mrodgers]

Okay. I didn’t think a condo qualified for FHA. I’ll look into it.

[justbroke]

Mrodgers let me know how you make out.