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FHA Mortgage after 7 or 11 Bankruptcy |
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FHA mortgage loans are available to qualifying homeowners 2 years after their chapter 7 or 11 bankruptcy has been discharged. The other FHA home refinancing requirement is that the borrower has not been late on their mortgage or debts since the Chapter 7 or 11 bankruptcies had been discharged. FHA mortgage loans enable consumers to rebuild their mortgage history with a competitive mortgage rate. FHA does not believe in gouging borrowers in dire straits with higher mortgage rates. |
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A Chapter 7 bankruptcy liquidation does not disqualify a borrower from obtaining an FHA-insured mortgage if the borrower has re-established good credit or chosen not to incur new debt obligations. The borrower also must have demonstrated an ability to manage his or her financial obligations since the discharge with no reported late payments from the mortgage company. If the borrower can display that the bankruptcy was caused by extenuating circumstances and has since shown a visible ability to manage their credit in a responsible manner. In addition to helping homeowners revitalize their fico scores faster, FHA home refinancing provides clow fixed interest rates that may be 4-6% lower than the alternative financing options available from a subprime lender.
The FHA recommends rebuilding your credit after a bankruptcy with new trade lines like a car, credit card or a fixed rate mortgage. If you have had a Chapter 7, or 11 bankruptcy discharged, then you will need to show new credit with good payment histories 2 years after the discharge date. |
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| In most cases, traditional home refinancing after a chapter 7 or 11 bankruptcy, borrowers are penalized with significantly higher mortgage rates because of the increased risk of payment default. However FHA mortgage loans may offer low payment relief with competitive fixed rates. Rate & Term Refinance with FHA Mortgage |
Since many property values have dropped, many adjustable rates have ironically increased so when borrowers go to refinance they are turned down by traditional lenders. Some homeowners do qualify for FHA Secure loans that enable for low rate and term refinancing. | |||||||||||||||||
Equal Housing Lender. © 2008 FHA Home Loan Refinancing, FSB, Government FHA Mortgage Division. Trade/service marks are the property of FHA Home Refinance Corporation, or their respective loan subsidiaries. Some mortgage products may not be available in all states. This is not a commitment to lend. Certain restrictions may apply. FHA Home Loan Refinancing Corporation, 3 Mason, Ste B, Irvine California 92618 |
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