Some of this depends on each particular situation, including the type of bankruptcy (usually Chapter 7 or Chapter 13) and what the debtor’s financial situation was prior to bankruptcy. But it is also possible to generalize the effects of bankruptcy and reduce lending options to fight debtors to a few options. As bankruptcies have become more common, especially since housing troubles in 2008, many lenders have become more willing to lend to debtors.

Credit Issues

Bankruptcies are very damaging to credit, and only they can deposit credit notes by hundreds of points. When combined with other actions that often go along with a bankruptcy, such as a default or Texas FHA home loan, the credit may fall and it is very difficult for debtors to qualify for any kind of financing at all. This is the main obstacle to obtaining a loan after filing for bankruptcy, although other restrictions may be charged. Much of the work the debtor has to do is focusing on finding a lender.

Traditional loans

Outmoded loans are made by lenders who prefer to see low risk borrowers who do not have a bankruptcy on their records – or at least have a bankruptcy that is several years old. Debtors may have to pay higher interest rates and settle for lower amounts for these types of loans, but they can often qualify as long as they are willing to wait. Many mortgage lenders, for example, will consider loans to a debtor as long as the bankruptcy is at least two years old. This shows that the debtor has handled the credit well in the recent period and can be counted on.

Bankruptcy loans

Bankruptcy loans are specific loans designed for people who go through a bankruptcy that does not have other loan options. These loans are easier for debtors to obtain, but also carry risks. In order to manage their own risks, these lenders – often non-traditional – require very high interest rates, which can create additional debt problems that bankruptcy will not take over. Debtors may also need to receive the authorization for the loan from the bankruptcy court.


A refinance replaces an existing debt with a new debt that is preferably easier to pay, often involving new mortgages. There are special types of refinancing’s, like Texas FHA home loan refinance bankruptcy, which are designed to be used during a chapter 13 bankruptcy when the debtor has to make payments to creditors up to five years before debts are discharged. As long as the debtor has followed this plan for at least a year, the refinancing raises the additional money it can use to terminate the plan early and complete the bankruptcy entirely.

Home loans for people with a history of foreclosure

People with a history of foreclosure can qualify for a home loan in the future. Seizures are common when homeowners stop paying their mortgages. The loss of a job or poor budgeting can play a role in the inability to make home loan payments. Because foreclosures affect credit ratings, qualifying for another mortgage takes time.

Less foreclosure History

A history of foreclosure qualifies qualifying for a home loan because foreclosures result in a significant drop in your personal credit score. The number of points lost after a foreclosure varies, but anyone who loses a property at the bank can expect a reduction of 200 to 300 points. Lenders usually wait until the applicant rebuilds his credit before considering it for another home loan. Credit enhancement after foreclosure indicate better habits and the applicant is less likely to default again.

Texas FHA home loan – Mortgage Loans

Wait three years after a foreclosure and then talk to a broker or lender about Texas FHA home loan. These government loans have helped countless people with credit problems in the past qualify for a mortgage loan. This includes people with foreclosure in their past and those who went bankrupt in the past. FHA mortgages are backed by the Federal Housing Administration. Although this government agency does not lend money, it insures home loans, which is why borrowers can qualify with less-than-perfect credit history.

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