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A Curious User
2 years ago
I'm 44, so I have credit history for the years prior, but I did file bankruptcy 3 years ago. My credit score is 693, and I have no debt except for student loans which I won't have to start paying on till June of this year. Does anyone know if I'll be able to qualify for an FHA loan? I'll have around $5,000 down.
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Best Expert Answer
Joe Wallace
2 years ago
This issue is usually handled on a case-by-case basis and much would depend on a variety of factors including whether you have previous work history, and whether the gap in employment is acceptable to that lender. The nature of your school/training may also play a role in how acceptable your circumstances might be to the lender. In general, FHA loan rules state the following in HUD 4000.1--note that the gap in employment does not address school situations, so this should not be taken as a specific answer to your question but rather a general rule. The school issue may work in your favor with regard to gaps in employment (depending on the lender) but you will need to have documentation for the time you spent in college:

For Borrowers with gaps in employment of six months or more (an extended absence), the Mortgagee may consider the Borrower’s current income as Effective Income if it can verify and document that:

--the Borrower has been employed in the current job for at least six months at the time of case number assignment; and
-- a two year work history prior to the absence from employment using standard or alternative employment verification.
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