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Eddieand1

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I am going to be discharged from Chapter 13 bankruptcy in 2 months, can I refinance my house?

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Maybe...

Helpful to 4 out of 4 people

Applying for a refinance holds the same restrictions as applying for a new mortgage.

  • You can obtain an FHA or VA loan during a Chapter 13 bankruptcy as long as you have made 12 months of Chapter 13 plan payments and the bankruptcy court approves the loan. If you don't have a satisfactory payment record, you may have to wait for a year after discharge.
     
  • You can obtain an USDA loan during a Chapter 13 bankruptcy as long as you have made 12 months of Chapter 13 plan payments and the bankruptcy court approves the loan OR 1 year after discharge.

     

  • You can obtain an Conventional loan 2 years after discharge.  If your case was dismissed without a discharge, you must wait 4 years after dismissal.

For a FHA loan or a VA loan, you will be required to provide an explanation of the bankruptcy.

...

Once these time periods have passed, anyone will then be able to apply for a mortgage, but you must still qualify for the mortgage loan.  That may be the toughest part after a bankruptcy.  Talk to your banker or mortgage broker to get a line on the best options for your specific situation.

Good luck and let us know how it works out!

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