Hope is not lost if you filed for Bankruptcy or have been discharged from a Bankruptcy.
FHA Bankruptcy
Whats great about FHA loan programs is that they are backed by our Government, Easier to Qualify and help with Less than Perfect Credit borrowers.
FHA understands that nobody is perfect and realizes that filing for Bankruptcy does not mean your not applicable for credit. FHA reviews all credit applicants based on your repaying profile and background. Even though you may have had hiccups in the past as long as you are able to re-establish a track history of paid on time agreements or even document an isolated time frame that resulted in excruciating circumstance.
With that being said what can you do with borrowers who filed for Bankruptcy? Take a look below…
Chapter 13 Bankruptcy 411
- Must have paid on time with the Bankruptcy for 12 complete months.
- Must obtain permission for the courts to refinance or purchase a home. Must have trustee sign off and finally the Judge to sign off final approval. Typically the Trustee charges $500 added to the HUD statement at closing to deliver this permission for the courts.
- Must establish 2-4 paid as agreed tradelines other than the bankruptcy.
- Must write a letter of explanation why you filed bankruptcy and what steps have you done to correct your credit default.
Chapter 7 Bankruptcy 411
- 24 months must pass from the time of Discharge Date of the borrower/spouse in order to apply for a FHA loan.
- Must establish 2-4 paid as agreed trade lines other than the bankruptcy.
- Must write a letter of explanation why you filed bankruptcy and what steps have you done to correct your credit default.
If you have any questions or comments please feel free to respond!
