Whether you can finance a home with an FHA mortgage in 12 months following a Chapter 7 bankruptcy depends on the reasons for the filing. If you were forced into bankruptcy for reasons beyond your control, for example a serious illness or major job loss / income reduction, an FHA lender might be able to approve a home loan. These are often called "extenuating circumstances." It's not easy to qualify under this rule. Usually, it takes more than a year to recover from a financial catestrophe.To take a shot at mortgage approval 12 months after bankruptcy, you need to prove that:
a. The reason for filing was not your fault or under your control
b. Since the bankruptcy discharge, you have managed your debts responsibly, with no late payments
c. The cause of your bankruptcy is not likely to recur
d. You otherwise qualify under FHA guidelines: debt-to-income, credit score, etc.
Note that FHA "allows" lenders to approve loans under some of these circumstances. They don't require it. If you qualify under guidelines, but get turned down, you may have to "sweeten" the package -- a bigger down payment, a cheaper house, a co-borrower, or work on re-establishing credit until your FICO score is at least average for FHA approved loans -- 670 or higher.