Bankruptcy Options

Bankruptcy Options with FHA

 

CREFCO can help you purchase or refinance a home, even in a Chapter 13 bankruptcy.

Find out how.

 

Buying a Home with FHA during a Chapter 13 Bankruptcy

It is possible to purchase a home through an FHA insured home loan while in a Chapter 13 bankruptcy. In order to do so, you need to meet a few HUD guidelines:

  • Home buyer needs to be in a Chapter 13 bankruptcy for at least 1 year.

  • All bankruptcy payments must have been on time

  • There must not be any late payments on debt since filing bankruptcy.

  • Minimum 530 credit score

  • Verification of a current mortgage or last 12 months rent payment

  • Must have permission from bankruptcy trustee

If you meet these conditions and are looking to purchase a home, let CREFCO help you get an FHA home loan.

Refinancing your home during a Chapter 13

While in a Chapter 13 bankruptcy, many of the same guidelines that apply to purchasing a home also apply to refinancing your home. You must have your trustee’s permission and have been in the bankruptcy for at least one year. Also, there may be no late payments since the bankruptcy was filed.

However, unlike with a home purchase, there is no minimum credit score to refinance with FHA while in a Chapter 13 bankruptcy. If your mortgage was included in the bankruptcy, the maximum LTV (loan to value) is 85%. If the mortgage was not included in the bankruptcy, the maximum LTV is 97%.

Buying or Refinancing During a Bankruptcy – The Next Step

To discover your best options for buying or refinancing during a Chapter 13 bankruptcy, call 1-866-854-4242. Friendly experts are standing by to help you find a solution that best fits your unique circumstances. You can also fill out our secure online application, and one of our experts will contact you directly.

FHA Bankruptcy Guidelines

FHA loans are generally not available to borrowers whose homes were foreclosed upon or given a deed-in-lieu of foreclosure within the last 3 years. There are exceptions however, including the establishment of good credit.

Chapter 7 and FHA?

It is also possible to purchase a home with an FHA loan for those who have gone through a chapter 7 bankruptcy. In this case, at least 2 years must have elapsed since the discharge date of the bankruptcy.