FHA loans allows refinance after bankruptcy. In fact,
even if you have had credit problems, such as a bankruptcy, it's easier
for you to qualify for an FHA than a conventional loan.
Chapter 7 Bankruptcy
At least two years must have elapsed since the discharge date of the
borrower and / or spouse's Chapter 7 Bankruptcy, according to FHA
guidelines. This is not to be confused with the bankruptcy filing date.
A full explanation will be required with the loan application. In order
to qualify for an FHA loan, the borrower must qualify financially, have
re-established good credit, and have a stable job.
A perfect credit score is not needed for an FHA loan approval. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a for a conventional loan. Sometimes scores down to 500 are accepted if there are compensating factors that offset the credit risk.
Generally, a borrower who has made timely payments for the last 12 months serves as a guide and demonstrates their willingness to repay future credit obligations. New FHA Policy changes require minimum FICO score to be 580 for 96.50% loan-to-value and anyone refinancing with a score lower than 580 will require 90% loan-to-value. These FICO requirements went into effect in the spring 2010. However, individual lenders will still require credit scores higher than 640.
What documentation will I need?
Refinancing After Chapter 7 Bankruptcy Florida, Refinancing After Chapter 7 Bankruptcy Florida