| For decades, mortgage loans approved by the Federal | | | | to those levels, which makes the prospect of an FHA |
| Housing Administration - so-called "FHA loans - have | | | | loan even more attractive. The good news is that you |
| been something of a last resort for most homebuyers. | | | | can get approved after bankruptcy! |
| Many of them were reluctant to engage in the | | | | The requirements vary in accordance with the type of |
| time-consuming paperwork and documentation | | | | bankruptcy filed, however. Chapter 7 and Chapter 13 |
| requirements that FHA loans require, and resorted | | | | bankruptcies are very different forms of liquidation, and |
| instead to seeking mortgages that often entailed higher | | | | each has a different affect on your ability to get |
| or variable interest rates. | | | | approved for FHA loans after bankruptcy. It is |
| With the collapse of the housing bubble over the last | | | | important to understand how each type of proceeding |
| several years, and the new recognition of the dangers | | | | impacts your ability to deal with the FHA. |
| of such variable interest loans, more would-be | | | | In a Chapter 7 filing, you are legally required to have |
| homebuyers than ever before are giving FHA loans a | | | | been discharged from the proceeding for at least 24 |
| second look. One question that many homebuyers ask | | | | months, and to have maintained a perfect payment |
| is whether they can even get approved for FHA loans | | | | history since then. When it comes to your ability to get |
| after bankruptcy. The answer may surprise you. | | | | approved for FHA loans after bankruptcy in Chapter |
| The first thing you need to understand about whether | | | | 13 proceedings, the news is even better. You can |
| you can get approved for FHA loans after bankruptcy | | | | actually obtain an approval after 12 months as long as |
| is the nature of the FHA loan program. They currently | | | | you are still making timely payments. |
| insure about one in three home loans across the | | | | Lenders prefer that you begin the process of |
| United States. The actual process is not a matter of | | | | establishing your credit again - though this is not always |
| the government itself loaning you your mortgage | | | | a requirement. Many people, after all, prefer to avoid |
| money. Rather, you receive your mortgage from | | | | incurring new debts so soon after emerging from |
| lenders who have been approved by the Federal | | | | bankruptcy. |
| Government, and the FHA insures the loan for you. | | | | To get approved for FHA loans after bankruptcy, you |
| First established during the Great Depression, the | | | | will need to be able to document payment history and |
| FHA's role in homeownership has grown over the | | | | compliance, so plan accordingly. Though the process |
| decades since, but still maintains its primary focus of | | | | can involve more time and effort than traditional |
| enabling lower and middle income families to purchase | | | | market-based home loans, it is good to know that |
| homes without the necessity of large down payments. | | | | even borrowers who have recently suffered the |
| Obviously, families that have recently experienced | | | | worst effects of a sour economy can still have |
| bankruptcy often see their standard of living lowered | | | | access to this critical part of the American dream. |