Can I Refinance My Home after a Chapter 13 Bankruptcy?

I am in a Chapter 13 Bankruptcy, Can a I Refinance My Home?

We have had many clients come to us with questions about refinancing after a chapter 13.

FHA Guidelines: “A Chapter 13 bankruptcy does not disqualify a Borrower from obtaining an FHA-insured Mortgage, if at the time of case number assignment at least 12 months of the pay-out period under the bankruptcy has elapsed.The Mortgagee must determine that during this time, the Borrower’s payment performance has been satisfactory and all required payments have been made on time; and the Borrower has received written permission from bankruptcy court to enter into the mortgage transaction.”

What this means:

• You’ll need to have 12 months of on-time payments to the trustee
• Written Permission from the bankruptcy court to get a mortgage.

This is great option for those that have some equity in their home and just want to pay off the court. A simple cash-out refinance can consolidate the debt into one low monthly payment.

Do you have more questions about refinancing your home while in a chapter 13?

Give us a call at 801-627-8888 or fill out a form and we’ll get in touch with you.