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Purchasing a House after Bankruptcy

January 17th, 2020 at 4:07 pm

Texas bankruptcy attorney, TX chapter 17 lawyer,The American Dream is the belief that anyone can succeed in life as long as they work hard and persevere. For many, success includes purchasing and owning their own home. The process of buying a home can be a confusing process and includes many financial and legal procedures. For those who have gone through bankruptcy at some point in their lives, purchasing a home can be even more difficult and confusing. There may be limitations to how much you can borrow from a lender or how soon you can buy a home, but it is not impossible.

Check Your Credit Report

Before you begin to apply for mortgages, you should pull a copy of your credit report. Your credit report will contain detailed information about your credit history, including your borrowing history and information about your bankruptcy. You should carefully look over this report to make sure that everything is correct on the report and that there are no mistakes that could make your report look more unfavorable than it really is.

FHA Home Loans

If you have filed for bankruptcy, one popular option that prospective homeowners consider is what is called a FHA home loan. A Federal Housing Administration (FHA) loan is an attractive option for many people who have gone through bankruptcy because they require low down payments and you do not have to have a high credit score to qualify. The minimum down payment for a FHA loan is 3.5 percent of the price of the home and you only need a credit score of 580 to qualify.

If you filed for a Chapter 7 bankruptcy, you will have to wait at least two years after the discharge before you can apply for a FHA loan. If you filed for a Chapter 13 bankruptcy, you can apply for a FHA loan as long as you have made one year of on-time payments.

Questions About Your Bankruptcy? A San Antonio, TX Bankruptcy Attorney Can Answer Them

Buying a home can be a stressful process for anyone, but for those who have recently gone through a Chapter 7 or Chapter 13 bankruptcy, it can be even more difficult. At the Law Offices of Chance M. McGhee, we understand how significant owning a home is for many families. Our skilled Boerne, TX bankruptcy lawyers can help you understand the home-buying process after you have filed for bankruptcy. To schedule a free consultation, call our office today at 210-342-3400.



Qualifying for a Mortgage after Bankruptcy

December 4th, 2014 at 8:31 am

mortgage after bankruptcy, San Antonio bankruptcy attorneyMany people who are considering filing for bankruptcy hesitate because they fear their credit will be ruined for years to come and future plans, such as qualifying for a mortgage to purchase a home, will be almost impossible. The good news is that most people who file for bankruptcy are able to repair and build their credit back up within a few years and are able to fulfill that dream of owning their own home.

Most mortgage lenders have certain guidelines they follow when it comes to credit issues such as bankruptcy, foreclosure history and short sales. The following is a standardized list that lenders around the country follow and include conventional lender guidelines, Federal Housing Administration (FHA) guidelines and Veterans Administration (VA) guidelines.

For Chapter 7 bankruptcy filings, there is a four year waiting period from the date of discharge for qualifications of conventional mortgages; and two year waiting period from the date of discharge for a FHA or VA mortgage qualification.

A person who filed for Chapter 13 bankruptcy must wait two years from date of discharge to apply for a conventional mortgage. For FHA or VA mortgages, there is a one year waiting period from date of discharge, which includes on time payments for that year.

If you have had a home foreclosed on, then you cannot apply for a conventional mortgage for at least seven years. For an FHA mortgage, you will need to wait three years and for a VA mortgage, there is a two year waiting period before you can qualify.

If you chose a deed-in-lieu of foreclosure option, then there is a four year waiting period for conventional mortgages, three years for FHA and two years for VA mortgage qualification.

Short sales are another option homeowners choose to avoid foreclosure. A short sale is when a homeowner sells the home for less than what is owed on the mortgage, but the mortgage holder agrees to accept that amount in order to release any liens on the homeowner. If you have had a short sale, then with a conventional lender, you will need to wait two years if the loan-to-value (LTV) amount was 80 percent or four years if the LTV was 90 percent.

For FHA loans, as long as you had no late payments on your original mortgage, you will only need to wait one year from the date of sale to apply. If there were late payments, then there is a three year waiting period. For VHA, there is a two year waiting period, regardless of payment history.

If you are struggling with what feels like overwhelming debt, bankruptcy may be an option for your financial situation, consult an experienced San Antonio, Texas bankruptcy attorney.

Call today for a FREE Consultation


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