FHA Loan after bankruptcy question

[slyfox]

I have abankruptcy that was discharged a little over 2 years ago. My question is about my income and if it can be used. I took a job as a insurance agent and I get paid commission. I have read online that two years commission income is required but in some instances as little is one year commission income can be used. So is it out of the question to get a loan approved after 1 year of commission income, when you have a previous bankruptcy. I have perfect credit since the bankruptcy. It was caused by a business that I owned that failed. Current credit score is around 650. I also have four other real estate loans from before bankruptcy that have been paid as agreed except for a couple of 30 day lates during the actual bankruptcy over 2 years ago.

[Cat Damiano]

Hi slyfox,


Welcome to the forum and thank you for joining..............


In order to be eligible for a new FHA loan with a commission income job, the commissions would have to be averaged over the previous two years, you may need to provide the last two years of tax returns along with the most recent pay stub. Commissions that are earned in less time than that are normally not considered as effective income. The underwriter would need to see that the income is stable over that time and not significantly declining.

You can do a search for an FHA approved lender in your area to ask additional questions that you have regarding the process and also if there is anything you can do to apply now.

HUD FHA Lender List