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I was discharged from a chapter 7 in nov. 2012 when can I refinance

by tee776 from Philadelphia, Pennsylvania. Aug 26th 2013 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 5,006 contributions

FHA & VA require 2 years, Conventional requires 4 years. FHA recently announced a new loan product called "back to work" which allows borrowers to obtain a mortgage after 12 months, however this is only for purchasing a new home, not refinancing. Also, if your home was not "reaffirmed" in prior to your BK discharge, you will encounter other stumbling blocks when trying to refinance.. and if there was any other mortgage involved in your refinance (2nd home, investment, etc.) and there was a foreclosure, short sale, or deed in lieu, then your waiting period will be extended to 3 years form the date the deed was taken out of your name.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Aug 26th 2013
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Elden Lewis (elewis_409_299)
#41 ranked lender in Indiana - 190 contributions

Enter your answer here

Aug 26th 2013
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Elden Lewis (elewis_409_299)
#41 ranked lender in Indiana - 190 contributions

I agree with William. I might add that if you are trying to go CONVENTIONAL financing and if there was any other mortgage involved in your bankruptcy (2nd home, investment, etc.) and there was a foreclosure, short sale, or deed in lieu, then your waiting period is pushed out to 7 years form the date the deed was transfered out of your name.

Aug 26th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

FHA now requires only 12 months from the discharge date. The Program is "Back To Work" and the mortagee letter is 13-26 so check that to see if you qualify. If you do qualify then they are some VERY important processes to getting the loan that must be followed before the case # is pulled.

Aug 26th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 2,549 contributions

Generally speaking, the best option require a minimum of two-year waiting period after a bankruptcy, and some as long as 7-years. You need to speak to a local mortgage broker, discuss your situation, and let them decide a plan of which loan works best, and what the waiting period will be for you.

Aug 26th 2013
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Peter Botros (PeterBotros)
#74 ranked lender in New York - 895 contributions

Williams answer is spot on.

Aug 26th 2013
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Larry Gray (lgray_312_247)
#5 ranked lender in California - 377 contributions

I would add to the excellent answers...3 open tradelines is ideal for the future. It may seem somewhat ridiculous, particularly after havingto go through a bankruptcy but it is ideal to get you to the best possible credit score and meet the requirements of most lenderson a conventional loan. Even though you may buy on an FHA loan after two years from your bk discharge, you can be building onqualifying at a good rate in 4 years time from the bk discharge- when you refinance into a conventional loan! At least one or two opentrade lines can get you to the mid fico credit score you need to refinance on FHA. I am assuming you already have at least one open tradeline well on your way to decent credit scores.Pay those revolving charge accounts to 0 every month! You will feel better for it as well as get better scores!

Aug 26th 2013
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Dave Metsker (DaveMetsker)
#1 ranked lender in Oregon - 2,064 contributions

Two years, minimum.

Aug 26th 2013
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Josh Lund (Josh_Lund)
#48 ranked lender in Minnesota - 82 contributions

Usually FHA & VA 2 years.

Aug 27th 2013
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James Barath (JamesBarath)
#1 ranked lender in Indiana - 344 contributions

Some very good answers thus far. Definitely, speak with a local mortgage banker to discuss the specifics of your bankruptcy and your credit before applying; otherwise, you will be spinning your wheels. Time for action is well before your eligibility date.

Aug 27th 2013
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