FHA Mortgage after 7 or 11 Bankruptcy

Our bankruptcy mortgage lenders offer FHA refinancing and home loans to homeowners with a B.K. or bad credit in their past. Most people are unaware that 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. Consider FHA refinancing because it often helps consumers to rebuild their mortgage history with a competitive mortgage rate. The Federal Housing Administration does not believe in gouging borrowers in dire straits with higher mortgage rates. FHA understands that good borrowers can have financial crisis arise and that doesn't mean that they won't be good borrowers again. Millions of American homeowners have been able to overcome bankruptcies and bad credit scores to qualify for affordable mortgage refinancing with FHA. Get a no cost quote for a FHA mortgage now by simply completing the form below.

The current refinance rates are so low that even with bad credit you may be in a position to save money with a lower interest rate. So unlike just a few years ago, you do not have to pay a dramatically higher rate from a subprime or hard money lender after a bankruptcy.

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. Qualifying for a mortgage after bankruptcy certainly has its challenges but the Federal Housing Administration believes that Americans deserve second chances.

Refinance After a Bankruptcy with FHA

In addition to helping homeowners revitalize their fico scores faster, FHA home refinancing provides low fixed interest rates that may be 4-6% lower than the alternative financing options available from a subprime lender. According to a recent article posted by Nationwide Mortgage, rates on bad credit refinance loans have never been better on mortgages insured by the FHA.

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.

Refinancing after a bankruptcy aren't as difficult as most people think. 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.

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