| A large
sector of home loans depend on VA or Federal Housing Administration loan
guarantees, so your ability to qualify for these guarantees may be able
to determine when you will be able to get a home loan.
The Federal Housing Administration will insure mortgages for
individuals that have filed Chapter 7 bankruptcy at the point of two
years after being discharged from bankruptcy, “if the borrower has
re-established good credit (or chosen not to incur new credit
obligations), and has demonstrated an ability to manage financial
affairs.”
For Chapter 13 bankruptcy cases, the FHA has regulations that specify
the borrower still in Chapter 13 debt adjustment, and who has completed
the one year payment plans and has court approval of said transaction
also qualify for insured mortgages.
The Veterans Benefits Administration also has regulations about
insured home loans similar to those of the FHA.
These types of loan guarantees also make it easier to get reasonable
interest rates on a home loan, as the loan rate is typically, and should
be, based on the guarantee status of the loan.
Many of the other factors involved in assessing your personal
situation with regard to bankruptcy and attaining a home loan are
difficult to go over here, but there are two main factors that can make
a difference.
- Since you have none of the old bankruptcy debt, a creditor that
sees you are no longer subject to repayment of old debts and are free
to collect new debt. This can help with particular creditors.
- Credit history still plays a role. Even though bankruptcy may have
adversely affected your credit rating, if your overall credit history
before the bankruptcy was good, this can also play a large role in how
new creditors see you.
|
