Chapter 13 Bankruptcy and Mortgage Financing

March 2, 2010

It’s believed  by many that once you enter a bankruptcy that you must wait years before applying for a mortgage.  However, in a chapter 13 bankruptcy you can become eligible for a mortgage in just 12 months.

FHA & VA guidelines allow for mortgage financing to purchase or refinance your current home after a satisfactory 12 month payment history.  The key is to make those payments satisfactory.  If even one payment is a day late it could cause the bank to deny you financing.

Other challenges that may arise in qualifying is getting your credit cleaned up and even re-established after you have filed the bankruptcy.  I recommend to my clients to work on cleaning up their credit and to also get set up with new credit to help raise their current credit scores.

The details of a chapter 13 bankruptcy can be different in every case but my team and I have helped hundreds of people get the financing they need or set them up in the right direction for future success.


One Response to “Chapter 13 Bankruptcy and Mortgage Financing”

  1. […] Bad credit does not disqualify you for a mortgage in all cases.  However, there are times that you will need to clean up or repair some of your credit prior to buying a home.  Bankruptcy also does not disqualify you from buying a home but you may have to wait in some cases please refer to this link on loans when you have had a recent/current bankruptcy […]

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