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Buying Home After Short Sale With NON-QM Mortgage Loans

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Buying Home After Short Sale With NON-QM Mortgage Loans

This BLOG On Buying Home After Short Sale With NON-QM Mortgage Loans Was PUBLISHED On May 15th, 2019

Government and conventional loans have a mandatory waiting period after bankruptcy, foreclosure, deed in lieu of foreclosure, short sale.

  • Buying Home After Short Sale With NON-QM Mortgage Loans is now possible for home buyers who recently had a short sale
  • Buying Home After Short Sale is possible with FHA Loans after a three-year waiting period
  • Fannie Mae and Freddie Mac require a four-year waiting period to qualify for conventional loans after a short sale
  • There are no waiting period requirements when buying a home after short sale with non-qm loans

In this blog, we will discuss buying home after short sale with non-qm loans.

Waiting Period Requirements When Buying Home After Short Sale

Government and Conventional Loans have a mandatory waiting period when buying home after short sale. We will go over the waiting period requirements on the individual loan program.

Here are the mandatory waiting period requirements when buying home after short sale:

FHA Loans:

  • FHA requires a 3 year waiting period requirement after a short sale, foreclosure, deed in lieu of foreclosure
  • The 3 year waiting period start date starts when the short sale has been closed and recorded which is reflected in the closing statement

VA Loans:

  • VA has a two year waiting period requirement after a short sale, foreclosure, deed in lieu of foreclosure
  • The 2 year waiting period requirement start date starts when the short sale has been recorded which is reflected in the closing statement

USDA Loans:

  • USDA requires a three-year waiting period after a short sale, foreclosure, deed in lieu of foreclosure
  • Again, the start date begins when the short sale has been closed and reflected in the closing documents

Fannie Mae And Freddie Mac:

  • Both Fannie Mae and Freddie Mac require a four-year waiting period after a short sale and/or deed in lieu of foreclosure
  • There is a seven-year waiting period after a standard foreclosure to qualify for conventional loans

NON-QM Mortgage Guidelines After Housing Event

NON-QM Loans are alternative financing mortgage programs.

  • There are no waiting period requirements after a short sale, deed in lieu of foreclosure, and/or foreclosure. 10% to 20% down payment is required
  • NON-QM Mortgage Rates are higher than government and conventional mortgage rates
  • There are no maximum loan limits with non-qm mortgages
  • There is no private mortgage insurance required with non-qm loans

NON-QM Mortgage Rates depends on the following factors:

  • Borrowers credit scores
  • Loan To Value
  • The longevity of the short sale, foreclosure, deed in lieu of foreclosure
  • Discount Points

The higher the borrowers’ credit scores are, the lower the mortgage rates. The more down payment and/or loan to value, the lower the rate. The longer the housing event has been seasoned, the lower the mortgage rates. Borrowers can lower the mortgage rates on non-qm loans by buying down the rate with discount points. Borrowers can qualify for non-qm mortgages with the following:

  • No waiting period after a short sale, foreclosure, deed in lieu of foreclosure, bankruptcy
  • Late payments in the past 12 months
  • Self-employed borrowers can qualify for non-qm bank statement loans for self-employed borrowers with no income tax returns required
  • No maximum loan limits
  • No private mortgage insurance premium

To qualify, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com. The Team at Gustan Cho Associates Mortgage Group is available 7 days a week, evenings, weekends, and holidays.

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