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Refinance after Ch.13

I Filled Ch. 13 2 years ago. My credit score is now 610, I have income of $52k/annually and debt of about $3k/mo with repayments. My payment are $1,100 on a $89k mortgage. I am coming up to a balloon payment in 6 months of $7k and won't be ale to afford the payments. Would it be a better Idea to refinance now - would I be approved for a better rate? by Franc33leap972 from Atlanta, Georgia. Apr 4th 2018 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

Someone needs to look more closely at your scenario.. you are making about $4300 per month, and your monthly debt payments are $3000.. That would put you at nearly 70% DTI.. which is way outside of what lenders will approve you for.. The short answer is that if you are 2 years out of a BK 13, then you can refinance with FHA.. but to qualify, you need to be below 56% DTI. The best advice I can give you is to contact a mortgage banker/broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with a Banker/Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the banker/broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the big box banks. 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 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Apr 5th 2018
Gregg Pomeroy (G.Pomeroy)
#50 ranked lender in Connecticut - 13 contributions

Hello, You can get a mortgage one year into a chapter 13. Your payment sounds a bit high on your current mortgage but I don't know how much your escrows are so its hard to say.Your debt to income ratio seems a bit high but its possible to reduce this with the new mortgage, again I don't have all the info needed for a full assessment. Either way its probably worth exploring while rates are still low. If you have any questions you are welcome to reach out to me at 203-299-2034, you can call or text that number day or night. Im available via email as well at: My website is:

Apr 5th 2018
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