Buyers are still able to purchase a home after Bankruptcy Discharge or fulfilling certain requirements during a Chapter 13 Bankruptcy. Dismissal is not the same as Discharge. Dismissal is used to describe the non completion of Bankruptcy terms and will not be acceptable for Loan Approval. Bankruptcy must be discharged. Read more here.

 Chapter 7

1. Must be Two years since discharge
   1. If less than two years from discharge then it will be  downgrade to manual underwrite and must have been circumstances beyond borrower’s control.
2. Must have re-established credit
3. Provide letter of explanation regarding reason for BK
4.  Any lates or Collections after BK must have an explanation of the extenuating circumstances surrounding them.

Chapter 13

1. Must be 2 years since discharge/release or downgrade to a manual underwrite
2. Must have re-established credit
3. Provide letter of explanation regarding reason for BK
4.  Any lates or Collections after BK must have an explanation of the extenuating circumstances surrounding them.
5. If borrower’s are currently in Chapter 13, follow requirements below:

• Must have permission from the court
• Must have made 12 on time payments to court trustee

If you have more questions, please do not hesitate to Email me or contact me at 713-589-3234 for more information.

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