If your a homeowner whose looking into refinancing your mortgage after going through a bankruptcy, you have a few different options. These options depend on things such as, how long ago the bankruptcy occurred, and if your credit has been repaired or re-established in any way since your bankruptcy. Here is some mortgage refinance options for you:

Different Home Mortgage Refinancing Options and Lenders

FHA Home Loan Refinancing Options
Typically, the best option for a homeowners who has recently gone through a bankruptcy is a FHA Home Loan. Recently though, the FHA has enacted more stringent credit requirements such as a minimum credit score of 580, while some lenders still require a credit score of 620. Also, one of the best parts of an FHA loan refinancing as opposed to getting a sub prime loan, is that the rates are usually much lower with an FHA loan. You may have to wait a longer time to get approved for this loan due to Government red tape and a lot of people applying , however, in the long run it is usually worth it for a homeowner who has recently declared bankruptcy.

Sub Prime Loan Options
The sub prime loan option has long been a option for homeowners who have a bankruptcy on their credit report, but still wish to refinance their home loan. By using a sub prime loan option, your credit problems are overlooked, and you will be allowed to refinance your home with less equity than other mortgage lenders typically allow. These loans are becoming harder and harder to find, but with enough effort you will be able to locate a lender who is able to work with you. Keep in mind that these loans have a higher interest rate and more closing costs and fees and should only be used as a last resort.

A Conventional Home Loan Refinance
If your bankruptcy has been over and done with more than four years ago and has since been discharged, and your credit rating has improved you can apply for a conventional home loan refinance. This way you can use any lender or bank you wish and ensure that you get the best refinancing deal possible. This is the hardest of all the loans to get but is by far the best loan possible.

-M Petrone

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