Chapter 13 Bankruptcy Refinance Loans

FHA mortgage refinance loans actually enable borrowers the ability to buyout their Chapter 13 Bankruptcy if they can document a timely payment period for the BK. The other FHA refinance requirement is that the borrower has had the Chapter 13 bankruptcy for at least 1 year. FHA refinancing enables borrowers in a BK to be rewarded with a lower fixed rate mortgage by simply showing our mortgage lenders that you have made the bankruptcy payments on time in the last twelve months.

In addition to helping bad credit borrowers reestablish their credit quicker, FHA loans offer very competitive interest rates that are typically 4-6% lower than the available subprime mortgages in the current financing market. Maintaining a good payment history for your bankruptcy or mortgage is a must for FHA refinancing eligibility.

Homeowners in a Bankruptcy may still be eligible for a fixed rate refinance that saves them money!

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.

Regular payments are made to a court-appointed trustee over a two to three year period or, in some cases, up to five years, to pay off scaled down or entire debts. If the borrower has finished making all payments satisfactorily, the mortgage lender may deem that they have reestablished with sufficient credit.

FHA refinancing is obtainable even if you are presently in bankruptcy. Bad credit scores can be overcome if the lender can document the borrower's ability and willingness to make the new FHA mortgage payments on time.

FHA Streamline Refinance Loans
FHA Refinancing & Debt Consolidation

Typically refinance loans for bankruptcy participants are penalized with higher mortgage rates due to the inherent risk of the borrowers bad credit in the past. However FHA loans may offer competitive interest rates if the reason for bankruptcy is viewed as beyond the borrower's ability to prevent. The refinance rates for FHA bankruptcy loans are fixed with no pre-payment penalties.

Rate & Term Refinance with FHA Mortgage
Chapter 13 Bankruptcy Refinance Loans
FHA Mortgage after 7 or 11 Bankruptcy Discharge