Chapter 7 Bankruptcy
Bankruptcy must be discharge a minimum of 36 months from date of application
Chapter 13 Bankruptcy
Borrower must have 12 months history with paid as agreed and permission from the
bankruptcy court is required.
A foreclosure must be dismissed a minimum of 36 months from the application date.
Borrowers with a previous foreclosure on a Rural Development loan are ineligible.
Delinquent Child Support
Delinquent child support must be paid current or in a payment plan. On a case-by-case basis
this requirement may be waived subject to underwriter review.
Open judgments, garnishments and all outstanding liens must be paid off prior to or at closing
and documentation of sufficient funds to satisfy these obligations must be obtained.
Collections / Judgment
• Collection accounts require satisfactory arrangements for payment.
• Accounts converted to collections within the previous 12 months indicate unacceptable
• Federal judgments require payment in full
Senior Loan Officer