If you are currently in active Chapter 13 bankruptcy, you might think that the mortgage qualification is out of reach, but that is not the case! The FHA Guidelines allow public borrowers with Chapter 13 bankruptcy to obtain financing under certain conditions.
Here’s what you need to know:
FHA Open Guide Chapter 13 Bankruptcy Loans
- 12-month on-time payment: You must make at least full recurring payments to the court as agreed in your payment plan.
- No delayed payment: All payments must be on time; payment after zero is allowed.
- Manual coverage is required: If your Chapter 13 has not been released for at least two years, manual coverage will apply and reserves are required.
- Court approval: You must obtain written permission from the bankruptcy court to enable you to make a mortgage transaction.
- No modifications to the payment plan: Your repayment plan cannot be modified due to difficulties or other issues.
How the mortgagor can help
- Check your bankruptcy payment history to make sure you are eligible.
- Guide you through the court approval process so that you can get the documents you need without stress.
- Work with underwriters who understand the FHA Guidelines Open Chapter 13 cases.
- Provide personalized solutions to enhance your approval opportunities and ensure favorable terms.
Why choose “mortgage”?
Many lenders shunned financing during bankruptcy, but in Mortgagerwe see the possibility of others seeing obstacles. Our experience, industry relationships and commitment to finding solutions means you don’t have to wait until bankruptcy to drive your home ownership goals.
If you are in active Chapter 13 and want to purchase or refinance, please contact us.
