• A Home Loan After A Bankruptcy

    Mortgage After BankruptcyGenerally one of the most heart-wrenching aspects of a slide into a bankruptcy and possible foreclosure … is the ability to own or purchase a home in the future.  Because a bankruptcy affects your credit and your purchasing power for a period of time, you need to know the basics of how a bankruptcy can impact your ability to obtain various types of government-backed home mortgages in the future.
    As a Georgia attorney, it’s my privilege to assist you with your bankruptcy and to provide you with all of the details so that you’ll know your options and choices BEFORE you file for bankruptcy.  Here is a brief outline of some (but by no means all) general guidelines for a waiting period that you and your lenders must follow before your next home loan.  This data is current at the time of printing but subject to change, so please contact us for specifics that assure your own legal rights.
    For Chapter 7 Bankruptcy –  You must wait 4 years from the discharge date of your bankruptcy or your dismissal date to pass, in order to qualify for an FNMA (Fannie Mae) loan.  They may also consider extenuating circumstances,  so see this link to FANNIE MAE INFORMATION.    If you seek a USDA loan you must wait 2-3 years from the discharge date, depending on your circumstances.  And if you want to apply for an FHA (backed by HUD) or VA (Veteran’s Administration) loan, 2 years must pass from your discharge date.  
    For Chapter 13 Bankruptcy –  For an FNMA loan, 2 years must pass from the discharge date, or 3 years from the dismissal date.  They may also consider other circumstances, see this link to FANNIE MAE INFORMATION.   For FHA or USDA loans, you must have paid out for 1 year, and those payments must have been satisfactory and on time.   In this instance, a Buyer must receive permission from court.   If you qualify to apply for a VA (Veterans Administration) loan, the VA requires that 1 year of satisfactory payments was made plus the Buyer must receive permission from the court.
    Home mortgage and bankruptcy are complex topics and the information above is by no means complete.  Each of these organizations has additional exceptions that may benefit your own circumstances.   It’s or job to make sure you receive all the information and assistance to help you make these important bankruptcy or foreclosure decisions.   Give us a call.  Let us help.  We’ll assure you of your rights.


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Information On This Site is Accurate to the Best of our Knowledge at time of Publishing but is not Guaranteed. Confirm all Details. ***Under Title 11 of the United States Code, law firms like Terry W. Smith Law that represent consumer debtors have been designated as "debt relief agencies". This means that we help people file for bankruptcy relief under the Bankruptcy Code.***