Do conventional loans make an exception to guidelines for a chapter 7 bankruptcy?

Good question. Fannie mae and Freddie mac guidelines are specific in regards to how many years one needs to be from the BK discharge date to be considered fora conventional mortgage. Some lenders may make exceptions to borrowers on this issue if they get the documentation that there was a catastrophic medical situation or a death that was the primary reason for the bankruptcy. Having tried to get that exception even to do a loan 1 year from a chapter 7 for an FHA loan (I year shy of the required 2 years from a chapter 7 BK) I and other colleagues were unsuccessful. We all wondered how bad it would have to have been for them to make the exception. I recommend you consult with a Mortgage Broker in your State who can better assist you with all required information considered.

Hello, FHA had a "back to work" program which allowed some exceptions and only required one year out of chapter 7 but that program has been discontinued. As of right now you need to be two years out of a chapter 7 bankruptcy to obtain a mortgage. If you have any other questions or need any help please let me know.