Back to Work Extenuating Circumstances Mortgage Versus NON-QM Loans

This  BLOG On Back to Work Extenuating Circumstances Mortgage Was UPDATED On November 10th, 2017

The FHA Back to Work Extenuating Circumstances Mortgage has been discontinued. Back to Work Extenuating Circumstances Mortgage Loan Program was created and implemented temporarily to help mortgage borrowers who have been involuntarily terminated from their employment due to the Great Recession.

This loan program created by HUD reduces the waiting period to one year after the following:

  • Chapter 7 Bankruptcy
  • Foreclosure
  • Deed In Lieu Of Foreclosure
  • Short Sale

The Gustan Cho Team at USA Mortgage

The Gustan Cho Team at USA Mortgage is a direct lender with no overlays on government and conventional loans. We are licensed in multiple states and work with countless of realtor referral partners.  Our Team gets daily inquiries from realtors throughout the United States about the specialty products we offer their home buyers Many realtors have requested that I write a blog about the mortgage loan programs for home buyers with prior bad credit and alternative loans programs.
Here are the services we provide our borrowers:
  • The Gustan Cho Team at USA Mortgage is available 7 days a week, including holidays
  • Our borrowers can always get a hold of me and my team on my cell at 262-716-8151 or email me at gcho@gustancho.com.
  • Clients can apply online, 24/7 by going to www.gustancho.com and clicking the APPLY NOW icon on top right category section. 
  • Pre-approvals are solid full TBD Credit Approvals issued by our underwriters.
  • Once mortgage client applies online, I run credit check and can submit credit profile to our Automated Underwriting System for an automated Fannie Mae approval.
  • All calls promptly returned. 
  • Available evenings, weekends, and holidays.
  • 100% mortgage approvals after submitting formal mortgage application. 
  • I will not submit a mortgage application until I have went over the mortgage case scenario with underwriting staff.
  • If you got turned down by another lender, please contact us: Over 75% of our borrowers are borrowers who gotten last minute loan denials by other lenders or are stressing over their loan process with another mortgage company.
  • I have closed on many loans that other lenders could not do.
  • All fully qualified home buyers can rest assured that mortgage loan will close.

FHA Mortgage Loan Program

  • 500 FICO to 580 FICO scores require 10% down payment with approve/eligibile.
  • 3.5% down payment on FHA mortgage loan program over 580 FICO credit scores with no lender overlays mortgage loan program.
  • Debt to income ratios up to 56.9%. 
  • Non occupied co-borrowers are allowed on FHA mortgage loan program.
  • Up to 6% sellers concession allowed with FHA mortgage loan program.
  • Open collections, late payments, bank overdrafts, judgments, tax liens, and other prior bad credit allowed. 
  • Collections do not have to be repaid.
  • Bankruptcy, Foreclosure, Deed in Lieu of Foreclosure,
  • Short Sales are allowed, however, need to adhere to Fannie Mae lending guidelines concerning mandatory waiting period requirements. 
  • One year waiting period after bankruptcy and/or foreclosure,
  • Back to Work Extenuating Circumstances Program, mortgage loans are no longer available. 
  • NON-QM Loans has no waiting period after foreclosure, deed in lieu of foreclosure, short sale.
  • Manual underwrites available on FHA mortgage loan program.
  • 100% gifts allowed on home purchase by family member on FHA mortgage loan program.
  • 24 hour mortgage loan underwrites and mortgage approvals.
  • Closings in 14 days if it is a rush file.  Most closings are in 30 days or less.
  • No waiting period for borrowers with short sale as long as they were current on their loan until the day of the sale.
     

FHA Back to Work Extenuating Circumstances Mortgage Versus NON-QM Loans

  • Effective August 15th, 2013, HUD has introduced the new FHA Back to Work Extenuating Circumstances due to an economic event mortgage program
  • The FHA Back to Work Extenuating Circumstances due to an economic event shortens the waiting period to one year for those home buyers who had a prior bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale.  
  • One of the major requirements for a home buyer to qualify under the FHA Back to Work Extenuating Circumstances due to an economic event is that they need to prove that they were unemployed or underemployed for at least six months prior to the initiation of the bankruptcy and/or foreclosure proceedings. 
  • Proper documentation will be required as well as supporting facts. 
  • A one hour HUD approved counseling course need to completed and the certificate needs to be signed by the housing counselor. 
  • The maximum debt to income ratios are 31% front end and 43% back end. 
  • The FHA Back to Work Extenuating Circumstances due to an economic event mortgage programs are all manual underwrites and the underwriter has tons of discretion in mortgage approvals.  
  • A detailed letter of explanation is what will make or break this deal. 

NON-QM Loans With No Waiting Period After Housing Event

As mentioned earlier on this BLOG, the Back to Work Extenuating Circumstances Mortgage is no longer available. The Gustan Cho Team at USA Mortgage now offers NON-QM Loans with no waiting period after a housing event.

Here is how NON-QM Loans Work:

  • No Waiting Period After Foreclosure
  • No Waiting Period After Deed In Lieu Of Foreclosure
  • No Waiting Period After Short Sale
  • One Year Waiting Period After Chapter 7 Bankruptcy
  • 10% to 20% down payment on home purchase
  • We offer 24 month Bank Statement Mortgage Loan Program for Self Employed Borrowers

Gustan Cho NMLS ID # 873293

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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