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Home Equity Loan on a Townhome/Townhouse

We declared bankruptcy and were discharged in January 2015. We acquired a mortgage in March of this year. We heard that PenFed granted home equity loans on townhouses (not every institution does, I guess), so we applied. We were turned down because of the bankruptcy. Does anyone know how to get around this or what institution would lend? We purchased our home from our landlord waaaaay below market. Thanks! by remusgrove236 from Phoenix, Arizona. 17 days ago Reply


You said that you declared BK 1/15 when was it discharged? The waiting period for some financing is 2 years from BK discharged date.

17 days ago
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Discharged in January 2015

16 days ago
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We will have some options for you give me a call if you would like to discuss 602-531-7040.

16 days ago
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,044 contributions

It blows me away when I look at other responses.. and none of them had answered your question.. Anyway.. I hope you find your answer in my response. First, You wont be able to get a HELOC or 2nd mortgage until you have passed the 4 to 7 years.. Keep in mind that lenders doing 2nd position loans take on much more risk than the 1st position.. the 1st is typically insured via FHA, USDA, VA or by private insurance if you go conventional.. but there is no insurance offered to the lender on 2nd position loans.. so lenders have to be much more picky about who they lend to.. for most all of them, if you have had a foreclosure, short sale or BK, then you will need to wait 7 years.. other institutions (small credit unions or community banks) might do it after 4 years if you have a personal relationship with that institution.. That all being said,, My guess is that you have an FHA loan since you said you had a BK in January 2015.. so for FHA, you have to wait 12 months before you can apply for an FHA cash out refinance.. with FHA, they will go 85% loan to value... If you would like more info, or if you would like to talk to me directly, my info is below.. (I'm Local).. I'm a preferred Lender with California and Arizona being my primary markets. 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 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

15 days ago
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