At proposed FHA case number assignment, a Chapter 7 discharge occurred 20 months earlier. The borrower has re-established satisfactory credit, but no qualifying extenuating circumstances are documented. How does this compare with FHA's standard Chapter 7 waiting period?
Correct Answer
D) It is four months short of the standard two-year period from discharge
FHA's standard is two years from Chapter 7 discharge at case number assignment. A shorter period of at least 12 months requires the applicable documented exception; satisfactory credit alone does not establish it. Waiting-period rules differ from credit-reporting time limits. Source: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001-hsgh-update16-5.pdf
Why This Is the Correct Answer
FHA's standard is two years from Chapter 7 discharge at case number assignment. A shorter period of at least 12 months requires the applicable documented exception; satisfactory credit alone does not establish it. Waiting-period rules differ from credit-reporting time limits. Source: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001-hsgh-update16-5.pdf
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