How Long Can I Buy a House After Chapter 13 Bankruptcy?

This Article Is About VA Chapter 13 Bankruptcy Guidelines On VA Home Loans

Homebuyers and homeowners can qualify for a VA loan during the Chapter 13 Bankruptcy repayment plan once they have been in the plan for at least 12 months.

The HUD Agency Guidelines on a home purchase is the same as refinancing during Chapter 13 Bankruptcy repayment plan. Lenders will require borrowers to have been in the Chapter 13 repayment plan for twelve months and have made 12 timely payments under the plan. Chapter 13 Bankruptcy does not have to be discharged. Bankruptcy trustee approval is required. Many borrowers are concerned about the bankruptcy trustee signing off on a mortgage during Chapter 13 bankruptcy.
The team at Capital Lending Network, Inc. has helped countless borrowers qualify for a VA loan during the Chapter 13 bankruptcy repayment plan. We never had a single trustee not sign off on a home mortgage. Therefore, you should not be worried about qualifying for a mortgage during the Chapter 13 Bankruptcy repayment plan. There is no mandatory waiting period after Chapter 13 Bankruptcy discharged date. However, if the Chapter 13 Bankruptcy discharge is not seasoned for at least two years, the file needs to be manual underwriting.

Filing Chapter 7 Bankruptcy And Rebuilding Credit After Discharge

Chapter 7 Bankruptcy benefits

Chapter 7 Bankruptcy benefits consumers who have no steady income, unemployed, little to no assets, and who have substantial unsecured debts.

Chapter 7 Bankruptcy gives consumers drowning in debts a fresh financial start in life. Most debts such as collections, charged-off accounts, judgments, and other non-government backed debts are dischargeable in Chapter 13 Bankruptcy. Bankruptcy filers have a certain dollar amount of exemptions when filing Chapter 7 Bankruptcy. Exemptions depend on the state petitioners’ reside. Every state has its own exemption by bankruptcy petitioners. This holds true with homeownership. You have a certain amount of equity you get to have in a home. If you decided to exclude a home mortgage or auto loan from Chapter 7 bankruptcy, you can reaffirm those debts as long as you do not go past the maximum exemptions allowed in your state. Chapter 7 Bankruptcy is normally discharged 90 days from the filing date. After 90 days of filing Chapter 7 Bankruptcy, you will normally get the bankruptcy discharged in 90 days. When Chapter 7 Bankruptcy is discharged, the consumer no longer has any debt. You should start rebuilding and reestablishing credit after the Chapter 7 Bankruptcy discharged date. The minute the bankruptcy has been discharged, you should get three to five secured credit cards with at least a five hundred dollar limit on each card as soon as possible.

Importance Of Rebuilding Your Credit After Bankruptcy

The team at Capital Lending Network, Inc. has helped countless borrowers rebuild their credit after Chapter 7 bankruptcy discharge.

Our loan officers at Capital Lending Network, Inc. (CLN Mortgage Group) are expert credit repair advisors who can help most folks get to a 700 credit score or higher in less than one year after the Chapter 7 Bankruptcy discharged date. There is absolutely no charge for our loan officers to help you rebuild your credit. Remember that just waiting out the waiting period after bankruptcy and/or foreclosure does not automatically make you eligible to qualify for a home mortgage. Lenders want to see rebuilt and reestablished credit after bankruptcy and/or a housing event. Getting three to five secured credit cards is the easiest and fastest way for the road of rebuilding and re-establishing credit after a bankruptcy discharge. Do not get any late payments and/or a foreclosure. Lenders frown upon late payments after bankruptcy and/or foreclosure.

Filing Chapter 13 Bankruptcy And Rebuilding Your Credit To Qualify For A Mortgage

Qualify For A Mortgage Chapter 13 Bankruptcy

Chapter 13 Bankruptcy benefits consumers who have a full-time job and has consistent income who need the court’s help to restructure their debts.

The bankruptcy court will appoint a bankruptcy trustee. The trustee will take a percentage of the consumer’s monthly wages and allocate that portion to paying the list of creditors. Most Chapter 13 Bankruptcy repayment plans are for five years. Creditors will get paid monthly for normally a 60-month term. Once the repayment term is over, the rest of the debts owed to creditors are discharged.
After Chapter 13 Bankruptcy discharge, the consumer is debt-free. Chapter 13 Bankruptcy repayment plans are normally for five years. Consumers should get three to five secured credit cards during the Chapter 13 Bankruptcy repayment plan. Most trustees will not have an issue with you getting three to five secured credit cards with at least a $500 credit limit so you can start re-establishing your credit during the Chapter 13 repayment plan. VA and FHA loans are the only two home mortgage loan programs that allow homebuyers to qualify for a mortgage during the Chapter 13 Repayment plan.

Eligibility Requirements On VA Loans During And After Chapter 13 Bankruptcy

You need to be in the repayment plan for 12 months and have made 12 timely payments.
Trustee approval on the new home purchase is required. It needs to be manually underwritten.
There is no waiting period after the Chapter 13 Bankruptcy discharged date to qualify for a VA and/or FHA loan. However, if the Chapter 13 Bankruptcy discharge has not been seasoned for at least two years, the file needs to be manually underwritten. The team at Capital Lending Network, Inc. are experts in originating and closing VA and FHA manual underwriting files. This holds especially true with helping borrowers during the Chapter 13 Bankruptcy repayment plan. To qualify and start the pre-approval mortgage process during or after Chapter 13 Bankruptcy with a lender with no lender overlays on government and conventional loans.

Please contact us at Capital Lending Network, Inc. at 800-900-8569 or text us for a faster response. Or email us at contact@capitallendingnetwork.com. The team at Capital Lending Network, Inc. is available 7 days a week, evenings, weekends, and holidays.


Peter has 7+ years of experience in residential lending. He is a licensed Realtor in the Chicagoland area.

5 Comments

Very frustrated and confused. I am being transferred in a few months from Indiana to North Carolina. We are in an active Chapter 13 and my husband is a veteran. We have a current mortgage but it is not being reported due to a Chapter 7 BK back in 2009 and the mortgage was not reaffirmed so this is not showing on our credit report. We applied with Alcova because they said they could get us a mortgage. Now, after them hitting our credit now twice in the last 90 days, they tell us our scores are not high enough. I told hem they would not be for conventional but basically are now telling us to get with a credit counselor. There is nothing they can fix on our credit. We have an active chapter 13 and have been paying anything else off that has come up. I am getting very nervous because we are getting closet to the time we need to move and I need to work out something so we can get with courts and get that ball rolling. Can you suggest something or help in any way?

I have been treated very poorly by my current mortgage lender and am now shopping around to see if I can qualify with a 580 credit score through other companies

Of course Alan. We are a mortgage company licensed in multiple states with no lender overlays on government and conventional loans. Feel free to reach out to us at gcho@gustancho.com or call us at 262-716-8151 or text us for a faster response. Looking forward to working with you and your family.

I am in the process of a divorce that is due to be final in early February. I also have high student loan debt but my IBR payment is $67 per month, auto payment 506, and other payments no more than $100 per month. Monthly income is $5040. Can you help get me into a conventional Fannie Mae loan? My current scores; TU 668, EX 652, and EQ 668. Thank you for your time.

Alicia, you should qualify for a conventional loan no problem. We can go up to a 50% DTI on conventional loans here at Capital Lending Network, Inc.

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