FHA Loan With Chapter 13 Bankruptcy

Common Lender Overlays
Common Lender Overlays
June 20, 2016
2016 FHA Guidelines On Buying House Flips
2016 FHA Guidelines On Buying House Flips
June 21, 2016
FHA Loan With Chapter 13 Bankruptcy

FHA Loan With Chapter 13 Bankruptcy: Can I Qualify?

You have run through a rough patch in your life and you have to file Chapter 13 Bankruptcy, now the questions is, will you be able to get another mortgage?  The answer to this question is yes, you can get an FHA Loan With Chapter 13 Bankruptcy.  There is a big difference here in that the guidelines are a little more difficult to get qualified for an FHA Loan With Chapter 13 Bankruptcy in relation to a Chapter 7 Bankruptcy.

First of all, with an FHA Loan with a Chapter 7 Bankruptcy, the borrower can qualify for an FHA Loan two years after the discharge date of the Chapter 7 Bankruptcy.  The fundamentals of a Chapter 7 Bankruptcy is a total liquidation of all the consumer’s assets in order to pay that consumer’s creditors.  However, most people who are looking to file Chapter 7 Bankruptcy have little or no assets anyway and all of their debts and creditors get wiped out.  If done properly the Chapter 7 Bankruptcy can be viewed as wiping the slate clean except for government debts, sudent loans, tax liens, child support, and alimony.

FHA Loan With Chapter 13 Bankruptcy: What Is Chapter 13 Bankruptcy?

In order to obtain an FHA Loan With Chapter 13 Bankruptcy you first must realize how a Chapter 13 Bankruptcy works.  To start with, you need to have assets and a job in order to file a Chapter 13 Bankruptcy.  A Chapter 13 Bankruptcy is a reorganization of a consumer’s debt by the discretion of a Chapter 13 Bankruptcy Trustee.  This Trustee will evaluate the money you make and assign a certain percentage to pay back your creditors through a structured payment plan.  The payment plans are normally between 36 and 60 months and you will make monthly scheduled payments.  When all the payments have been made per the payment plan, any remaining debts are discharged and this is called the Chapter 13 Discharge Date.  In order to qualify for an FHA Loan With Chapter 13 Bankruptcy you must be 12 months into your payment plan, have been on time with all your monthly payments, and have the approval of your Chapter 13 Bankruptcy Trustee.

In terms of a waiting period for an FHA Loan With Chapter 13 Bankruptcy, there isn’t one required by FHA guidelines.  You can get a loan as of the discharge date of your Chapter 13 as long as the FLA Loan goes through manual underwriting.  Also, if you are within two years of your Chapter 13 Discharge Date, you will be required to have a manual underwrite per the FHA’s guidelines for FHA Loan With Chapter 13 Bankruptcy.  If you have been denied an FHA Loan With Chapter 13 Bankruptcy and you feel you meet all the minimum requirements, it could be due to the fact that the FHA Lender has FHA Lender Overlays which will put additional requirements to yur file in order for it to be approved.  What lenders do is add additional guidelines to make the loan less of a risk due to the fact that you have applied with additional standards above and beyond FHA’s minimum requirements.

If you are looking for an FHA Loan With Chapter 13 Bankruptcy and have been turned away by other lenders, you need to reach out to me today and we can go about getting you approved or develop a plan to where we can get you approved.  We don’t deal with lender overlays and can get you apprived with the minimum requirements.  I look forward to hearing from you at 888-900-1020, contact@loanconsultants.org, or www.loanconsultants.org.

 

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