Many homeowners who have filed bankruptcy and retained their homes wonder if they can take advantage of the current low interest rates and refinance their homes. The short answer to that question is it depends. If you have filed a Chapter 13 and you are still paying on your 13 your option would be to apply for a loan modification and you would need the trustee’s approval to move forward with that process. If you have filed a Chapter 7 and your debt has been discharged the answer is a little different.
What are the qualifications to refinance your home if your debt has been discharged in a Chapter 7 Bankruptcy?
The requirements to seek refinancing from Fannie Mae or Freddie Mac after filing a Chapter 7 bankruptcy is that the discharge must have been granted at least four years prior to the discharge. The requirements to seek refinancing through FHA is that the discharge must have been granted at least two years prior to the discharge. The minimum credit score for anyone attempting to refinance is 580 and as would be the case for anyone seeking to refinance the borrower must show a good credit history since the discharge, a minimal debt to income ratio, good employment history and any other number of factors that a bank may consider when approving loans.
If you have any questions about how filing for bankruptcy will affect your credit or your ability to refinance your home in the future contact one of Dailey Law Offices’ experienced bankruptcy attorneys today for a free consultation.