Bad Credit Mortgage Loans Alabama With No Lender Overlays

This BLOG On Bad Credit Mortgage Loans Alabama With No Lender Overlays Was UPDATED On November 10th, 2017

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. Home buyers in Alabama can now qualify for government and conventional loans with bad credit mortgage loans Alabama with prior bad credit and lower credit scores.

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 Bad Credit Mortgage Loans Alabama

The Gustan Cho Team at USA Mortgage are experts in helping Alabama home buyers qualify for Bad Credit Mortgage Loans Alabama. We specialize in helping Alabama mortgage loan 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 mortgage loan 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

FHA insured mortgage loans are phenomenal vehicles for Alabama FHA mortgage loan borrowers with prior bad credit credit.

  • As stated earlier, we specialize in bad credit mortgage loans Alabama
  • However, Alabama mortgage loan 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 The Gustan Cho Team at USA Mortgage.
  • Mortgage underwriters will evaluate the overall credit history and financial profile of the mortgage loan borrower when underwriting bad credit mortgage loans Alabama.
  • For example, they might look at a ten year credit history and 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 Alabama mortgage loan 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 
  • Alabama home buyers can qualify for FHA Loans with outstanding tax liens and judgments 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 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
  • The Gustan Cho Team at USA Mortgage has no lender overlays on government and conventional loans in Alabama

It will be extremely difficult for Alabama mortgage loan borrowers to get a mortgage approval if they have had multiple recent late payments in past 12 months.  My advise 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 The Gustan Cho Team at USA Mortgage at 262-716-8151 or email us at gcho@usa-mortgage.com.

Gustan Cho NMLS ID # 873293

Related> Mortgage Rates On Bad Credit Mortgage Loans Start 3.25%

Related> Home Loan With Bad Credit

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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