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.
In addition, they must obtain housing counseling from an agency approved by the Department of Housing and Urban Development. Borrowers generally are not eligible for a new FHA loan until three years after a foreclosure or two years after a bankruptcy. Previously, the death of a spouse or a medical emergency had been exceptions that could cut the wait to a year; now loss of income is listed as an extenuating circumstance as well.