Florida Chapter 7 Bankruptcy Mortgage Lenders:

Eligible if discharged at the time of closing – Send in all docs for pre-approval upfront! 

1 Day After Chapter 7 Bankruptcy Mortgage Program – For those that qualify

The Florida Chapter 7 Bankruptcy Program is a unique Housing Empowerment Program in which a purchase transaction is facilitated 1 day after a Chapter 7 Florida bankruptcy by a HUD-approved non-profit government entity that allows prospective Chapter 7 Bankruptcy filers to enter a Structured Financing Agreement and ultimately transition to homeownership.

Florida mortgage after Chapter 7 bankruptcy discharge

After Chapter 7 Bankruptcy Florida Mortgage Program Overview

• Cash – 5% Down Payment – 3.5% Down + fees = about 5% + Seller can pay closing cost up to 6%.
• Credit – 580 Credit score Note: Under- 580 considered case by case.
• Income- Documentation (one year) OR Assets as Income OR 3 months Bank Statement self-employed OR 1099 + Bank Statements.
• Eligibility- U.S. Citizens OR Permanent Resident Aliens OR Non-Permanent Resident Aliens OR ITIN OR DACA.
• Loan limits– listed below 

General Eligibility
• Purchase only
• 30-Year Fixed Rate Standard and High Balance
▪ High Balance is available on a case-by-case basis with prior approval’
• Primary Residence for Homebuyer

Income
• 12 months of consistent employment history is preferred
▪ Employment history of less than 12 months may be acceptable with compensating factors
▪ Income will be calculated according to FHA and mortgage industry standards, unless otherwise
indicated in the guidelines
• Eligible income includes, but is not limited to:
▪ Wage Earner Income
▪ Self-Employed Income
▪ Bank Statement Only
▪ Independent Contractor/1099 Employee Income
▪ Individual Taxpayer Identification Number (ITIN) Income
▪ Asset Depletion
▪ Asset Liquidity
▪ Dividends and Interest
▪ Rental Income

Renter’s Insurance

Renter’s insurance is recommended for the Homebuyer but is not required. If obtained,
documentation must support the policy is paid in full prior to closing and the renter’s insurance policy
should include the following standard coverage:
• Personal property, liability, and additional living expenses
• Deductible should be standard for the policy, not to exceed $1,000.
• Any additional coverages that are considered standard for the marketplace of the subject property

Property Eligibility

• Single Family (Attached and Detached)
• 2-Unit (Attached and Detached)
• Planned Unit Development
• Condominium (FHA Approval required)
• Manufactured Home (Multi-Wide only)
• Modular Home
• Townhome

Ineligible Property

• 3-4 Unit (Attached and Detached)
• Cooperative Property
• Mobile Home
• Single-Wide Manufactured Home

Homebuyer Eligibility
• U.S. Citizens
• Non-U.S. Citizens (green card and Social Security Number required)
• Non-Permanent Resident Aliens, including Deferred Action for Childhood Arrivals (DACA)
(Individual Taxpayer Identification Number (ITIN) and proof of ability to repay required)
• Non-Occupant Homebuyers (must sign the long-term purchase agreement or structured
financing agreement and meet all eligibility requirements; may not provide all qualifying income)

Assets & Reserves
• Homebuyers must document sufficient cash/liquidity to consummate the transaction, including
the following:
▪ 1st Payment Due (lease/contract payment and taxes/insurance)
▪ Closing Costs, including title fees (per title fee sheet) and DreamBuilder fees
▪ Sufficient down payment funds (minimum 3.5%)
▪ Note: Additional reserves may be required to support an exception or meet certain program
requirements, contact your Account Executive for more details
• Assets must be documented with two (2) months of bank statements (most recent), covering two
(2) statement periods
▪ Assets must be liquid at time of closing
▪ Business assets and investment accounts may be eligible
▪ Gift funds are acceptable for funds to close, but may not be used for reserves
▪ An LOE may be required to certify the deposited funds did not come directly, or indirectly, from
the seller, real estate agent, lender, or any other interested party to the transaction
• The Homebuyer(s) is responsible for the following DreamBuilder program fees at closing:
▪ $1,250 program underwriting fee
▪ One (1) month complete contract/lease payment to be collected at closing
▪ 1/12th of the annual Program Management Fee
▪ $100 refundable security deposit fee
▪ $250 HOA service fee (if applicable)

Credit
• Minimum credit score is generally 580
▪ Homebuyers with scores < 580 or no scores may be allowed with an approved exception
• At least one (1) credit score from a major bureau is required
▪ If the Homebuyer has more than one (1) credit score, the representative score will be the middle
score when three (3) scores return and the lower score when two (2) scores return
▪ Eligible credit reports must reflect a minimum of one (1) tradeline and provide at least 12 months
of credit history; alternative tradeline histories may be considered
▪ A soft pull credit report may be acceptable, provided a credit score (or “No Score”) is provided
• 12-month housing history verification required (0x30)
▪ Additional requirements apply if a foreclosure is present, see guidelines
• Bankruptcy requirements:
▪ Chapter 7: Eligible if discharged at time of closing
▪ Chapter 13: Eligible if discharged OR if filed within 12 months of closing and documentation
supports 0x30 payments since filing
▪ Note: All bankruptcies must be recorded on the credit report
• Foreclosure, Deed-in-Lieu, and Short Sale allowed if discharged or satisfied at least one (1) year
prior to closing
▪ Note: All events must be recorded on the credit report

Debt-to-Income (DTI)
• Max 50% PTI (housing payment to income) / 60% DTI (total debt to income)
▪ Exceptions may be considered with strong compensating factors
▪ Unless indicated otherwise in the guidelines, liabilities are evaluated per FHA 4000.1

Florida Requirements
• All properties in Florida require a 4-point inspection; any noted unsatisfactory items must be
fully repaired prior to closing. Additionally, a wind mitigation report is required.

1st Contract Payment
The first contract/lease payment is due the month immediately following the closing of the purchase transaction. If a new month begins within seven (7) days of the month of closing, the first contract/lease payment will be collected at closing

Additional Parties
Persons not on the loan, such as a non-purchasing spouse, may be added to the lease/contract and
title per agency and state guidelines.

Appraisal & Property
• Full FHA appraisal required; Open Mortgage Wholesale will order from an AMC approved for the
DreamBuilder program
▪ Appraisal must be marked “as-is” at the time of purchase, or have a completion cert/1004D if
property was “subject to” repairs or completion prior to purchase
▪ Appraiser must certify that the subject property meets FHA minimum property requirements;
no health, safety or adverse conditions can be present
▪ Subject property must not have commercial influence, be considered a “working farm,” or have
commercial agricultural income potential
▪ Appraisal must indicate the property condition as C1-C4; C5 considered with exception review
▪ A Property Condition Disclosure (or equivalent) is recommended for all transactions
• Automated Valuation Model (AVM) required
▪ AVM value must be within 10% of full appraised value
▪ Any appraised value greater than ten percent (10%) in difference from the AVM value is subject
to a desk review, or a counteroffer to the property purchase price.

Solar Panels
Solar panels are acceptable provided the solar panels are included in the price of the home and
financed as part of the mortgage. Leased solar panels may be acceptable on a case-by-case basis
only.

Second Lien Requirement
All DreamBuilder transactions are required to have a second lien with the following terms:
• Lien amount will be 1% of the lower of the purchase price or appraised value
• Forgivable in 10 years, amortized over 30 years
• No regular monthly payment required, and no interest accrued

Real Estate Owned
A Homebuyer with additional real estate owned will be reviewed on a case-by-case basis and allowed
by exception only. Contact your Account Executive for details.

Verification of Rent (VOR)

12 months of documented 0x30 payment history (in good standing, no prior evictions or late
payments, and no balances remaining upon termination of lease agreement) is required.
• Property Management Company: Fully completed VOR
• Private Landlord/Private VOR: Document 12 months of payment history (cancelled checks,
bank statements, or a ledger of payments from the landlord through a third-party source (subject
to approval from the underwriter)).
• Renting from Relative: Cancelled checks or bank statements are required
• Electronic Payments: Alternative methods of documenting housing history, including electronic
payments (Venmo, Zelle, PayPal), are acceptable with a complete history documented.
Cash payments can be verified by a VOR (even with a private landlord) if one of the following is
provided:
• Copies of cashier’s checks for the most recent two (2) months
• Three (3) months bank statements showing money going to the landlord
Note: If the Homebuyer is unable to properly document the above, an exception may be requested

2025 Lending Limits