Refinancing After a Bankruptcy with FHA Mortgage

FHA has unique bankruptcy guidelines for Chapter 7,11, and 13 BK mortgage refinancing. FHA loan programs allow borrowers in a chapter 13 to actually refinance out and pay off the bankruptcy.
Borrowers must have been in the bankruptcy for at least a year and they need to provide proof that their BK payments were paid on time. Lower payments and get cash out while saving money by consolidating debts. Consider taking out a new FHA mortgage loan even if you have low credit scores.
Individuals with FHA loans face a 12-month waiting period post-Chapter 13 bankruptcy before they can pursue refinancing. However, during this interval, borrowers must demonstrate enhanced financial stability and creditworthiness to qualify for refinancing.

Consider Fixed Rate Home Refinancing after a Bankruptcy

We have helped many homeowners get back on track by refinancing adjustable rate debts and consolidating revolving credit that often times help significantly increasing the fico scores within a few months. If you’re Chapter 7 or 11 bankruptcy has been discharged for more than 2 years, then we can offer you a fixed rate mortgage loan to improve your home financing situation.
If you have re-established good credit, we can assist you in qualifying for a refinance loan that may save you a lot of money each month. Consider converting adjustable rate debt into a fixed simple interest loan for lower monthly payments. Take advantage of our government insured bad credit FHA loans and apply for a competitive low rate refinance today.
  • Fixed Rate Refinancing After BK
  • Mortgage Refinance after a Bankruptcy
  • Fixed Interest Rate Home Loans
  • Refinance with FHA to Pay off Chapter 13 BK
  • Consolidate Revolving Credit Debts into a Loan
  • Low Payments with Interest Only Loan Options for 1st and 2nd mortgages
  • Mortgage Insurance is Tax Deductible Now with FHA Loans
  • Refinance out of your High Rate Sub-Prime Loans
  • Good Re-Established Credit Justifies Low Rate Refinancing with FHA
Following Chapter 7 bankruptcy, which differs from Chapter 13 bankruptcy regulations, borrowers must adhere to the FHA’s prescribed “seasoning” duration. Presently, this interval stands at two years, with the potential for additional time mandated by the mortgage lender or bank.
Certain financial institutions stipulate a three-year waiting period before considering a new home loan application. Although some lenders may accommodate eligible borrowers after the FHA’s two-year threshold for Chapter 7, it’s crucial to understand that the obligatory waiting period commences upon the discharge of bankruptcy not its filing date.

Best Reasons to Refinance Your Mortgage After a Bankruptcy

Securing lower monthly payments: Refinancing to a lower interest rate or extending your loan term can result in reduced monthly payments. However, opting for a longer term may entail higher interest costs over the loan’s duration.

Benefit from lower interest rates: A refinance with lower interest rates compared to your initial mortgage can yield substantial savings throughout the loan’s lifespan. Yet, securing a favorable interest rate may be challenging until your bankruptcy is no longer a factor in your credit history.

Access cash for debts and expenses: With adequate home equity and eligibility for a cash-out refinance, you can replace your existing mortgage with a larger one, retaining the surplus funds as cash. This cash infusion can be utilized to settle debts or cover various expenses. If refinancing doesn’t align with your needs, rest assured there are alternative methods to leverage your home equity.

Convert to a fixed interest rate: Refinancing provides an opportunity to switch from an adjustable-rate mortgage to a fixed-rate mortgage. Opting for a fixed rate can facilitate better budgeting and shield you from unforeseen rate hikes that may strain your finances.

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