| Traditional mortgage financing dictated lending after seven to ten years after a bancruptcy. Today, a mortgage can be obtained after only 1 day from release. Most likely you will be paying a higher interest rate after a bankruptcy, because of the increased risk perceived by the lender. Very often, when a homeowner has been in a Chapter 13 bankruptcy for more than a year, especially if he has made all of his payments to the trustee on time, but even if not, he can save money every month by refinancing and paying off the bankruptcy.
This also helps by discharging the bankruptcy and putting this part of the persons life in the past.
After your bankruptcy has been discharged, take a look at your credit report to see if all your accounts that have been taken care of by your filing has been reflected as discharged. Improperly characterized accounts can have a negative impact on your credit scores.
To qualify for a conforming loan, a bankruptcy must have been discharged at least 4 years ago. Alt A and subprime loan programs may still be an option if it has been less than 4 years since the bankruptcy has been discharged. Also you will find lenders that will loan even if you are in the middle of a chapter 13. FHA guidelines are 1 year from the file date. You have conventional lenders that will refinance your home if you have equity and are paying your chapter 13 payments on time. This is called a chapter 13 buyout. What's nice is you completely rid yourself of the debt in the chapter 13 using your equity to do so allowing you to be fully discharged from the BK. You will have to gain permission to do so from the court but it's very rare to be turned down. When choosing among different bankruptcy mortgages, applicants should keep in mind that they are likely to refinance within a few years, after they rebuild the credit profiles through better credit management. Therefore, bankruptcy mortgage loan applicants should consider bankruptcy loan programs with lower starting interest rates, such as hybrid mortgages with a lower fixed rate for the initial two or three years. After bankruptcy, it is also important to make sure that the customer seriously review their options to refinance and take cash out for debt consolidation with the goal of reducing the amount of the overall monthly bills they have into one low payment, which is much more readily manageable than a menagerie of high interest accounts. | 
