For those looking for a short-term injection of cash, for those 55 and over looking for extra income and who are planning on living in their homes for many years and are less concerned about leaving a legacy, it could be an avenue worth exploring. Other options include a line of credit or downsizing.
2017 FHA Guidelines. 1  Bankruptcy â You may apply for a FHA insured loan after your bankruptcy has been discharged for TWO (2) years with a Chapter 7 Bankruptcy. 2  Foreclosure â You may apply for a FHA insured loan THREE (3) years after the sale/deed transfer date. Short Sale / Deed in Lieu â You may apply for a FHA insured loan THREE (3) years after the sale/deed transfer date. FHA treats short sale, deed in lieu and foreclosure as the same waiting periods.
CHAPTER 13 BANKRUPTCY. 1  Conventional â two years from the discharge date, or 4 years from the dismissal date. 2  FHA mortgage â You must have made at least 13 of the Chapter 13 payments on time. 3  VA â You must have made at least 13 of the Chapter 13 payments on time. This should take 13 months; FORECLOSURE. You can begin to qualify for a mortgage 2 to 3 years after the foreclosure. These years can pass at the same time as the years from the bankruptcy, so you have an incentive to do both at the same time, especially if your house is underwater.