Chapter 13

I was recently discharged from a chapter 13. What do I need to do to purchase a home?

A lender once told me he loves people who have filed Chapter 13. If you have made your Chapter 13 payments on time for 12 consecutive months, as well as no late payments on your other obligations for 12 months, you are eligible for an FHA mortgage at the lowest interest rate available. In fact, you’re eligible to purchase a home even if your Chapter 13 has not been discharged yet, again, as long as you’ve had no late payments for 12 consecutive months. FHA loans do require a 3% down payment, so go ahead and start saving your down payment, and you’re on your way. You have been given a second chance to be a good steward of your money and resume your road to wealth.