This BLOG On Bad Credit Mortgage Loans Alabama With No Lender Overlays Was UPDATED And PUBLISHED On September 18h, 2019
Alabama is one of the hardest-hit states during the Great Recession of 2008 .
- However, the housing market has since recovered
- New mortgage regulations were created and implemented
- Homebuyers in Alabama can now qualify for government and conventional loans with bad credit mortgage loans Alabama with prior bad credit and lower credit scores
In this article, we will cover and discuss bad credit mortgage loans Alabama with no lender overlays.
Qualifying For Home Loan With Prior Bad Credit
Many folks in Alabama have had a period of financial hardship during their lives and as a result, their credit has suffered.
- Some have filed bankruptcy while others have had a previous foreclosure
- This had impacted their credit and credit scores
- As a result of derogatory credit, most of these folks could not get credit and had to purchase everything cash
We live in a credit-driven world and requesting credit after credit and credit scores took a recent major blow is often difficult.
Qualifying For Mortgage With Prior Bankruptcy And Housing Event
Gustan Cho Associates are experts in helping Alabama home buyers qualify for Bad Credit Mortgage Loans Alabama. We specialize in helping Alabama borrowers with prior bad credit get mortgage loan approvals.
- There is life after bankruptcy, foreclosure, and after periods of bad credit
- As long as Alabama home buyers have a full-time job, we can help Alabama mortgage borrowers get a mortgage approval
- However, there are conditions with bad credit mortgage loans Alabama
The borrower needs to prove that they have demonstrated timely payment history for at least 12 months with no late payments during that period and have re-established credit history
How Do Mortgage Underwriters View Bad Credit Mortgage Loans Alabama
- As stated earlier, we specialize in bad credit mortgage loans Alabama
- However, Alabama borrower needs to prove that he or she is now creditworthy and has re-established credit as well as timely credit payment history for the past 12 months
- Mortgage underwriters frown on any late payments after a bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale
Any overdrafts in the past 12 months is a definite NO-NO.
A recent overdraft is not a deal killer with Gustan Cho Associates:
- Mortgage underwriters will evaluate the overall credit history and financial profile of the borrower when underwriting bad credit mortgage loans Alabama
- For example, they might look at a ten-year credit history
- If the borrower had a period of bad credit for two years and then they re-established their credit and have been timely since that period of bad credit history, this would be the ideal candidate
However, if the borrower has consistent late payment throughout the whole ten-year credit history, the candidate would probably not be eligible for a mortgage loan nor any other loan.
FHA Loans With No Lender Overlays
FHA Loans is the most popular mortgage loan program in Alabama.
Here are the basic FHA Guidelines:
- 580 Credit Scores
- 3.5% down payment
- Outstanding Collections and Charge Offs do not have to be paid off to qualify for FHA Loans Alabama
Debt To Income Ratios: 46.9% front end and 56.9% back end debt to income ratios to get approve/eligible per AUS.
Qualifying For Alabama Mortgages With Judgment And Collections
Alabama home buyers can qualify for FHA Loans with outstanding tax liens and judgments:
- This holds true as long as they have written payment agreement with IRS and/or Judgment Creditor
- 2 Year Waiting Period After Chapter 7 Bankruptcy discharged date
- 3 Year Waiting Period After the recorded date of foreclosure and/or deed in lieu of foreclosure or short sale
- Alabama FHA mortgage borrowers can qualify for FHA Loan one year a Chapter 13 Bankruptcy Repayment Plan
- There is no waiting period to qualify for FHA Loans after Chapter 13 Bankruptcy discharged date
Gustan Cho Associates has no overlays on government and conventional loans in Alabama.
Qualifying For Mortgage In Alabama With Recent Late Payments In The Past 12 Months
It will be extremely difficult for Alabama mortgage loan borrowers to get a mortgage approval if they have had multiple recent late payments in the past 12 months. My advice to those who are seeking a mortgage and have had recent late payments is to wait until he or she has been timely on their monthly credit payments for 12 consecutive months and then apply or contact us for credit advice.
Alabama home buyers who need to qualify for bad credit mortgage loans Alabama can contact Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at email@example.com.
Gustan Cho NMLS ID # 873293