2017 fha-refinance-after-bankruptcy

FHA Refinance After Bankruptcy 2017

FHA Refinance After Bankruptcy 2017

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.

Chapter 13 Bankruptcy

FHA will consider approving a borrower who is still paying on a Chapter 13 Bankruptcy if those payments have been satisfactorily made and verified for a period of one year. The court trustee's written approval will also be needed in order to proceed with the loan. The borrower will have to give a full explanation of the bankruptcy with the loan application and must also have re-established good credit, qualify financially and have good job stability.

Credit Score

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?

W2's for the past 2 years
Current pay stubs for the past month
Bank statements for last 2 months for each active account with sufficient reserves (all pages)
Latest retirement statement for each active account (all pages)
Residence addresses for past 2 years (if you reside at your current address for less than 2 years)
Recent mortgage statement (s)
Homeowners declaration page
Clear copy of Driver’s License
Clear copy of SS card
Addresses and loan information of other real estate owned (if any)
Personal tax returns for the past 2 years, current income statement & balance sheet for business (self-employed only)

FHA Refinance After Bankruptcy Florida, FHA Refinance After Bankruptcy Florida