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Is it possible to refinance current home or get a new mortgage 1 year out of Ch. 13 BR discharge?

Current home is valued at approx. $500k, with $280k 1st mortgage and $85k HELOC balance owed. Mid-credit scores are around 630.
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May 31 2013 - Simpsonville
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Answers (3)

FHA, VA and USDA require 1 year from pay out period and approval from trustee if still in payment plan. If you're a Vet I would try a VA refi since all VA refi's are considered cash out.

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May 31 2013
Yes, it is possible to refinance 1 year from a Chapter 13 bankruptcy discharge.  FHA will allow it but will require a "manual underwrite".  This is a more detailed underwriting process than one would undergo otherwise.

Because you have a HELOC, your refinance would be considered "cash-out".  This is considered a higher risk, and it could be harder to qualify for FHA refinancing.

If you are 2 years out of a Chapter 13 discharge, you have a lot more options.  Both conventional and FHA programs will be available to you.

Hope this helps.
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May 31 2013
Yes, you can apply for FHA financing.   
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