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Filed ch 13 two years ago - still in ch 13 - 3 more yrs to go - when will lenders start to look at financing another home?

Montgomery, AL |
Filed under: Chapter 13 bankruptcy

In our ch 13 we surrendered our home. Our atty stated that 2 yrs after we've been making bankruptcy payments we could start to see about getting financed for another home but so far all lenders have turned us down siting the bankruptcy. Some even say "come see us after you've been discharged for a few years" - that's about 5 yrs down the road. Is there no life after bankruptcy?

Attorney Answers 3


  1. It is very difficult to get financing when you are in an active Chapter 13 because in most places, you must get court approval for the financing to go through. Your report of making your plan payments can help you to qualify for financing, and I would begin searching by speaking with local credit unions and realtors. Hope this perspective helps!


  2. Under current FHA statndards, you could qualify for an FHA backed mortgage only after you recieve a discharge in the Chapter 13, assuming that you have sufficient income and that you have not fallen behind on any other obligations subsequent to filing the Chapter 13.


  3. If you are in an active chapter 13 you must obtain permission from the chapter 13 trustee to take on new debt. Obtaining a loan while in an active bankruptcy can be difficult but it is possible. I have had several clients successfully purchase homes and refinance as well while still being in an active chapter 13. It will of course depend on your particular case.

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