Default on SBA loan -> no FHA loan in future?

[JackBondLove]

I just spoke with the SBA, a creditor that I am defaulting on. She said that even after Chapter 7, the loan stays on the books, and that I would need to pay it off (thankfully it will not grow exponentially like a student loan!) for me to get an FHA loan in the future. She said this is the case for *any* government loan.

Will I be able to get a home loan in the future without the FHA?

[ejhamilton]

I worked for a mortgage broker and people who filed their FHA loan in BK could not get another FHA loan. The government does not give out 2nd chances. Once you get blacklisted, that's it. It's the same with stafford student loans. If you don't pay, they don't lend.

However, that will NOT affect you getting a home loan that is not FHA, or from a private lending company. They typically have a higher down payment and/or higher interest rate and usually your credit score needs to be a little higher than what is required for FHA.