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If you’re ever tried to buy your first home, you know that FHA loans can be a great benefit to home buyers. The loan terms are usually quite agreeable, the interest rates are usually lower, and best of all the down payments are usually less than conventional loans. FHA loan limits are higher than they used to be. This makes an FHA loan a great way for first time home buyers to afford their first home.

Many homeowners have had to, for many reasons beyond their control, resort to filing for bankruptcy or endure a foreclosure since the real estate bubble burst. The down turn in the economy is forcing families get smarter with their credit and take steps to insure their families’ future. One of the things that families are having to become more aware of are the credit requirements for any future loan approval.This article helps you understand how to get approved for an FHA loan after having a bankruptcy or foreclosure.

If you’ve had a foreclosure or bankruptcy in your past, FHA insured loans are available but have certain restrictions – the people applying for the home loan need to have almost perfect credit since the bankruptcy / foreclosure. These types of loans are also subject to normal income and debt guidelines.

A Chapter- Bankruptcy requires 12 consecutive months of on time payments on all accounts, including utilities, cell phones etc and everything else on a credit report from the filing of the bankruptcy. Chapter 7 Bankruptcies require 24 months of perfect credit from the disposition of the bankruptcy. Foreclosures require at least 3 years of perfect credit from the foreclosure.

Getting any loan approved, including FHA insured loans can a grueling process.It’s very important to consult a specialist in FHA insured loans to determine whether or not you are eligible for a loan before looking at any of your dream homes.

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Comments (1) Nov 20 2009