Mortgage After Chapter 13 Bankruptcy Guidelines
In this guide on what are the eligibility and qualification requirements to qualify for a mortgage after Chapter 13 Bankruptcy, we will cover what type of mortgage loan program you can qualify for during and after the Chapter 13 Bankruptcy repayment plan. We will also cover the agency mortgage guidelines on qualifying for a mortgage after Chapter 13 Bankruptcy. Chapter 13 Bankruptcy is a court-ordered debt restructuring plan giving the petitioner time to pay their debts over a certain period of time mandated by the U.S. Bankruptcy Courts.
Do You Have To Wait To Qualify For a Mortgage After Chapter 13 Bankruptcy?
Every loan program has its own mandatory waiting period guidelines on mortgage after bankruptcy. We will cover each mortgage loan program and its waiting period requirements to qualify for a mortgage after Chapter 13 Bankruptcy and Chapter 7 Bankruptcy later in this article. There are three different types of government-backed mortgage loans.
Mortgage After Chapter 13 Bankruptcy Versus Chapter 7 Bankruptcy
Chapter 7 Bankruptcy gets discharged after 90 days after being filed. Chapter 13 Bankruptcy is an extended repayment plan before it gets discharged. Chapter 13 Bankruptcy is when the courts take a percentage of the petitioner’s wages and distribute it to debtors in reduced amounts accordingly.
What Is Chapter 13 Bankruptcy and How Does It Work?
Chapter 13 Bankruptcy is normally a five-year debt repayment plan. Once the petitioner files for Chapter 13 Bankruptcy, they have a bankruptcy trustee assigned to their case. The trustee acts on behalf of the bankruptcy court and is the person who approves a mortgage if the petitioner were to request a home purchase and/or refinance. In this guide on mortgage after Chapter 13 Bankruptcy, we will discuss and cover qualifying for a mortgage during and after Chapter 13 Bankruptcy and the mortgage options homebuyers have.
Can I Qualify For a Mortgage After Chapter 13 Bankruptcy?
Homebuyers can qualify for a mortgage after Chapter 13 Bankruptcy discharge. However, depending on the loan program, there may be a waiting period requirement. FHA and VA loans are the only two mortgage loan programs that will not mandate a mandatory waiting period to qualify for a mortgage after Chapter 13 Bankruptcy.
How Soon After Filing Chapter 13 Bankruptcy Can I Qualify For Mortgage
Borrowers can qualify for an FHA and VA loan one year after filing Chapter 13 Bankruptcy. VA and FHA loans are the only two mortgage loan programs that allow people to qualify for a home purchase and/or refinance mortgage during the Chapter 13 Bankruptcy repayment plan. Chapter 13 Bankruptcy does not need to be discharged.
Chapter 13 Bankruptcy Trustee Approval on FHA and VA Loans
The trustee needs to sign off on the mortgage. Many people worry about getting trustee approval. The team at Non-QM Mortgage Brokers has never had a situation where a bankruptcy trustee signed off on a home mortgage during the Chapter 13 Bankruptcy repayment plan. As long as the borrowers can afford the proposed mortgage payments, it should be good. The trustee will definitely sign off on a modest home during the Chapter 13 Bankruptcy repayment plan.
Waiting Period Requirements For Mortgage After Bankruptcy
Government and conventional loans have waiting period requirements after the Chapter 13 Bankruptcy discharge date. Here are the agency guidelines to qualify for a mortgage after Chapter 13 and Chapter 7 Bankruptcy discharge date:
HUD Mortgage After Chapter 13 Bankruptcy Guidelines on FHA Loans
HUD has no waiting period requirements after the Chapter 13 Bankruptcy discharge date on FHA loans. However, if the Chapter 13 Bankruptcy is not seasoned for two years after discharge, it needs to be manually underwritten. HUD has a two-year waiting period after the Chapter 7 Bankruptcy discharge date.
VA Mortgage After Chapter 13 Bankruptcy Guidelines
Veterans Affairs has no waiting period requirements after the Chapter 13 Bankruptcy discharge date on VA loans. However, if the Chapter 13 Bankruptcy is not seasoned for two years after discharge, it needs to be manually underwritten. Veterans Affairs has a two-year waiting period after the Chapter 7 Bankruptcy discharge date.
Fannie Mae and Freddie Mac Mortgage After Chapter 13 Bankruptcy Guidelines on Conventional Loans
Fannie Mae and Freddie Mac require a four-year waiting period after a Chapter 13 Bankruptcy dismissal date. Fannie Mae and Freddie Mac require a two-year waiting period after a Chapter 13 Bankruptcy discharge date. Fannie Mae and Freddie Mac require a four-year waiting period after a Chapter 7 Bankruptcy discharge date
Non-QM Loans One Day Out of Bankruptcy and Foreclosure
Non-QM loans do not have a waiting period after bankruptcy and/or foreclosure. You can qualify for non-QM loans one day out of bankruptcy and foreclosure with no waiting period requirements. However, a 30% down payment is required. If you are looking for a mortgage lender with no overlays on mortgage after Chapter 13 Bankruptcy, please contact us at Non-QM Mortgage Brokers at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Non-QM Mortgage Brokers is available 7 days a week, on evenings, weekends, and holidays. The team at Non-QM Mortgage Brokers,, Inc. is available 7 days a week, on eveings, weekends, and holidays.
