Mortgage After Bankruptcy: Make It Happen With FHA
Contrary to popular belief, past financial difficulties don’t necessarily prevent you from getting a mortgage. There are many programs available that allow you to buy a home after bankruptcy, and one of the most popular options is an FHA Loan.
FHA financing is a great way to purchase a new home after bankruptcy. With low rates, easy qualification, and a down payment requirement of only 3.5%, an FHA Loan is a smart way to become a homeowner.
Generally, a Chapter 7 bankruptcy should be discharged for two years prior to applying for an FHA Mortgage. During that 24-month period, you should have:
Re-established good credit
Not incurred new credit obligations
There are exceptions to the two-year rule. You may qualify for FHA financing after one year if:
The bankruptcy was caused by extenuating circumstances beyond your control
You can provide a documented ability to manage your financial affairs in a responsible manner
If you filed for a Chapter 13 bankruptcy, the requirements are even more forgiving. With Chapter 13, you may apply for an FHA Loan after one year (12 months) of court ordered payments. Payments made prior to official discharge are considered, so you may be able to obtain FHA approval fairly soon after your bankruptcy.
If you have questions or need additional help, contact us using the form below or at 708-531-8388. United Home Loans will be happy to put you on the path to FHA home ownership.