Question

He client earns $3,000 in wages per month and will receive $700 per month in child support, once an agreement is finalized, has $2,000 in savings. She wants to by within 6 months, and plans to obtain FHA financing, which requires a 3.5% down payment, the average price of homes in the area is $100,000. She qualifies for a local down payment assistance program which pays for closing costs and prepaid expenses up to $4,000. She had a Chapter 7 bankruptcy discharged successfully 18 months ago, and she recently paid off an auto loan and student loans, her credit score is 620, her lease expires in two months, but

the property manager will allow for a six-month lease extension. Which aspect of this client's situation requires her to wait six months before she can purchase a home?

A- The client's current housing ratio is 36%.
B- The client's credit score is 620.
C- The client's child support cannot be counted as income until finalized.
D- The client's bankruptcy was discharged 18 months ago.

Answer 1

The aspect of the client's situation that requires her to wait six months before she can purchase a home is the fact that her bankruptcy was discharged 18 months ago.

Step-by-step explanation:

The aspect of the client's situation that requires her to wait six months before she can purchase a home is D- The client's bankruptcy was discharged 18 months ago. After a Chapter 7 bankruptcy, there is usually a waiting period of 2 years before a client can qualify for an FHA loan. Since the client's bankruptcy was discharged 18 months ago, she would need to wait an additional 6 months to meet the waiting period requirement.