Gustan Cho Associates are experts in helping borrowers qualify and get pre-approved for bankruptcy mortgages during or after bankruptcy. There are waiting period requirements after Chapter 7 Bankruptcy discharge on government and conventional loans. There are traditional and non-prime bankruptcy mortgages. Borrowers can qualify for government and conforming bankruptcy mortgages with little to no down payment and bad credit at Gustan Cho Associates.

USEFUL LINKS: How To Qualify For Bankruptcy Mortgages?

Types of Bankruptcy Mortgages

Types of Bankruptcy Mortgages

There are two different types of bankruptcies that are most common for borrowers:

  • Chapter 7 Bankruptcy
  • Chapter 13 Bankruptcy | Chapter 11 Bankruptcy

Many people think filing bankruptcy is the end of the world where they can no longer qualify for credit or a mortgage. Actually, that is NOT TRUE. It is the opposite.

USEFUL LINKS: Buying a House After Chapter 7 Versus Chapter 13 Bankruptcy

Qualifying For Bankruptcy Mortgages During and After Chapter 13 Bankruptcy

Gustan Cho Associates has countless options for bankruptcy mortgages. Borrowers who cannot qualify for bankruptcy mortgages after bankruptcy discharge can qualify for non-prime and non-QM bankruptcy mortgages after bankruptcy with no waiting period and no maximum loan limits with no maximum loan limits.

Homebuyers can qualify for bankruptcy mortgages during and/or after Chapter 13 bankruptcy. FHA and VA loans are the only mortgage loan program that allows borrowers to be eligible for financing during the Chapter 13 repayment plan. The bankruptcy does not need to be discharged. Borrowers can qualify for VA and FHA loans allowing borrowers one year into the repayment plan after making 12 on-time payments. Trustee approval is required for mortgage approval during bankruptcy repayment. Borrowers can qualify for VA and FHA loans during and after Chapter 13 bankruptcy on purchase and refinance transactions.  There are no waiting period requirements after the Chapter 13 Bankruptcy discharged date.

USEFUL LINKS: Mortgage Programs During and After Bankruptcy

What You Need To Know About Bankruptcy Mortgages

Bankruptcy is a federal law that helps consumers get a fresh start in their financial life. Many people have credit scores surpassing 700 FICO just one year after their Chapter 7 Bankruptcy discharge. Homebuyers can qualify for a mortgage during and/or after bankruptcy when they meet the waiting period guidelines on the individual loan program. Gustan Cho Associates also offers non-QM mortgages one day out of bankruptcy and foreclosure. Lenders want to see no late payments after bankruptcy. Borrowers should start to re-establish their credit the minute they get discharged from Chapter 7 Bankruptcy.

USEFUL Links at GCA Mortgage:

Comparing Chapter 7 Versus Chapter 13 Bankruptcy Mortgages

The mortgage agency guidelines differ in Chapter 13 versus Chapter 7 Bankruptcy. Chapter 11 Bankruptcy is a debt restructuring repayment plan that is similar to Chapter 13 Bankruptcy. We will explain the VA and FHA guidelines after bankruptcy mortgages. FAQ we often get from our clients is why Gustan Cho Associates can help borrowers get approved on VA and FHA loans after bankruptcy when other lenders cannot.  VA and FHA guidelines after bankruptcy mortgages are the same for home purchase and refinance loans.

USEFUL LINKS: Comparing Chapter 7 Versus Chapter 13 Bankruptcy Mortgages

Why Gustan Cho Associates is the Lender of Choice for Traditional and Non-Prime Bankruptcy Mortgages?

Why Gustan Cho Associates is the Lender of Choice for Traditional and Non-Prime Bankruptcy Mortgages?

We will detail and explain why Gustan Cho Associates is the lender of choice for homebuyers with little to no down payment with less than perfect during and/or after bankruptcy. We will compare and contrast why GCA Mortgage can do VA and FHA loans after bankruptcy which other lenders cannot do. One important thing VA and FHA borrowers need to realize is that not all lenders of VA and FHA loans after bankruptcy have the same mortgage guidelines. It is easy to assume that since VA and FHA loans are government-backed mortgages, all lenders should have the same mortgage guidelines on VA and FHA loans after bankruptcy. This is not the case.

USEFUL LINKS: Re-Establishing Credit After Bankruptcy

FHA Loans After Chapter 7 Bankruptcy

There are mandatory waiting period requirements to qualify for FHA loans after Chapter 7 Bankruptcy. The waiting period requirements after the Chapter 7 bankruptcy discharge date are the same on VA and FHA loans. To qualify for FHA loans after Chapter 7 bankruptcy, there is a two-year waiting period requirement after the discharge date. Gustan Cho Associates has no lender overlays on FHA loans after Chapter 7 bankruptcy discharge. Our wholesale mortgage lenders do not have any additional lending requirements that are above and beyond the minimum agency guidelines of HUD on VA and FHA loans.

USEFUL LINKS: FHA GUIDELINES AFTER CHAPTER 7 BANKRUPTCY

VA Loans After Chapter 7 Bankruptcy

There are mandatory waiting period requirements to qualify for VA loans after Chapter 7 Bankruptcy. The waiting period requirements after the Chapter 7 bankruptcy discharge date are the same for VA bankruptcy mortgages. To qualify for VA loans after Chapter 7 bankruptcy, there is a two-year waiting period requirement after the discharge date. Gustan Cho Associates has no lender overlays on VA loans after Chapter 7 bankruptcy discharge. Our wholesale mortgage lenders do not have any additional lending requirements that are above and beyond the minimum agency guidelines of the Veterans Administration on VA loans.

USEFUL LINKS: VA GUIDELINES AFTER CHAPTER 7 BANKRUPTCY

FHA Guidelines During Chapter 13 Bankruptcy Mortgages

There are no waiting period requirements to qualify for VA and FHA loans after Chapter 13 Bankruptcy discharge. The mortgage guidelines on VA and FHA loans during and after Chapter 13 bankruptcy is exactly the same. Borrowers can qualify for an FHA or VA loan during the Chapter 13 bankruptcy one year into the repayment plan with 12 months of timely payments. The Chapter 13 bankruptcy does not need to be discharged for borrowers to qualify for VA and FHA loans during and after the Chapter 13 bankruptcy repayment plan. All borrowers during Chapter 13 bankruptcy home purchase and refinance mortgage loans need to be manually underwritten. Manual underwriting is only allowed on VA and FHA loans (see our manual underwriting blog).

USEFUL LINKS: FHA Loans During Chapter 13 Bankruptcy

FHA Guidelines After Chapter 13 Bankruptcy Mortgages

FHA Loans After Chapter 13 Bankruptcy

There are no waiting period requirements after the Chapter 13 Bankruptcy discharged date to qualify for FHA loans. HUD Chapter 13 guidelines on FHA loans are almost identical to the VA Guidelines After Chapter 13 Bankruptcy discharge date.

USEFUL LINKS: FHA Loans After Chapter 7 Bankruptcy

VA Guidelines After Chapter 13 Bankruptcy Mortgages

There are no waiting period requirements after the Chapter 13 bankruptcy discharge date to qualify for FHA and VA loans. If the Chapter 13 bankruptcy has not been seasoned for two years, the file needs to be manual underwriting. The team at Gustan Cho Associates are experts in manual underwriting of VA and FHA loans. The main difference between automated underwriting system approval versus manual underwriting guidelines is a human underwriter focuses more in detail on the borrower’s ability to repay the loan. Debt to income ratio caps is lower on manual versus AUS underwriting. Debt to income ratio caps depends on the number of compensating factors the borrower has.

VA Guidelines During Chapter 13 Bankruptcy Mortgages

USEFUL LINKS: VA Guidelines During Chapter 13 Bankruptcy Repayment