Is FHA Only for First-time Homebuyers?

No, is the answer to this question. As long as the FHA loan has not been used in the last 3 years you may still obtain a FHA loan.

This is great news for move-up buyers.

FHA and Bankruptcy

Let's revisit the following question: Can I obtain a FHA loan if I am less than two years out of a bankruptcy (Chapter 7). Most often, the answer is, "No." However, remember that every file stands on its own merits. FHA considers circumstances that are beyond the applicant's control (such as the death of the principal wage earner or serious long-term uninsured illness, etc.). As I have said before, you never know until you ask your lender.