Buying House After Selling Home With Late Payments

Buying House After Selling Home With Late Payments

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this article, we will cover and discuss buying a house after selling home with late payments. One of the frequently asked questions is buying a house after selling home with late payments possible. There are instances when a homeowner is behind on their mortgage payments and decide to sell their home. After they sell their home, their intention is buying house after selling home with late payments on the home they sold. Buying a house after selling home with late payments on the home they sold can create an issue when qualifying for a new mortgage.However, it is possible buying house after selling home with late payments with non-QM loans.

Can You Buy A House With Late Payments?

YouTube player

Homebuyers can qualify for a new mortgage with outstanding collections and a charge-off account. They can qualify for a new mortgage with low credit scores. However, all lenders want to see timely payments in the past 12 months by borrowers. This holds especially true with timely mortgage payments in the past 12 months Qualifying for a mortgage for buying a house after selling home with late payments in the past 12 months on a prior mortgage is possible with Non-QM Loans. A large percentage of our borrowers at Gustan Cho Associates are Non-QM Mortgage Borrowers. In the following paragraphs, we will be covering and discussing buying house after selling home with late payments in the past 12 months.

Getting Automated Underwriting System (AUS) With Recent Late Payments

All government and conventional loan applications need to go through the automated underwriting system (AUS). There are three AUS FINDINGS.

  1. Approve/Eligible which means the AUS rendered an automated underwriting system approval.
  2. Refer/Eligible which means the automated system cannot render an automated approval and VA and/or FHA loans needs to be downgraded to a manual underwrite.
  3. Refer/With Caution which means the borrower does not qualify.

Qualifying for a mortgage for buying a house after selling home with late payments in the past 12 months is possible if the borrower can get an approve/eligible per the automated underwriting system. One or two late payments are not always a deal killer. However, multiple late payments in the past 12 months will be difficult in getting automated approval per AUS.

Buying House With Late Payments on Prior Mortgage In The Past 12 Months

It is possible buying house after selling home with late payments on the prior mortgage payments in the past 12 months. Borrowers who cannot get an approve/eligible per automated underwriting system (AUS) on government and/or conventional loans, may qualify with non-QM loans. Non-QM mortgages are portfolio loans offered at Gustan Cho Associates. One of the frequently asked questions is can you get a new mortgage with late payments? Mortgage underwriters review how recent late payments may have the borrower’s ability to repay their new mortgage loans.

Benefits Of Non-QM And Alternative Financing Programs

Benefits Of Non-QM And Alternative Financing Programs

There are many benefits of going with Non-QM Loans. There are no mandatory waiting period requirements after bankruptcy and/or housing event (foreclosure, deed in lieu of foreclosure, short-sale). There are no maximum loan limit caps on Non-QM Mortgages. Late payments in the past 12 months are allowed. Non-QM loans require a 10% to 30% down payment on a home purchase. Self-employed borrowers can qualify for bank statement loans with no income tax returns required. 12 months of bank statements are averaged to calculate monthly qualified income. Non-QM loans credit score requirements are FICO scores down to 500 FICO allowed. No private mortgage insurance required is required on non-QM loans.

Non-QM Loan Approval With Mortgage Late Payments in the Past 12 Months

Buying house after selling home with late payments is possible with non-QM loans. Non-QM mortgages is the best mortgage option for buying house after selling home with late payments. Late mortgage payments in the past 12 months are allowed on Non-QM Mortgages. Credit disputes during the mortgage process are allowed and do not have to be retracted. No pre-payment penalty on owner-occupant Non-QM Loans. Non-QM Mortgage Rates are higher than government and/or conforming rates. However, since there is no pre-payment penalty, borrowers can use Non-QM Loans as a bridge loan until they can refinance it to a conforming mortgage. For more information about the contents of this article and/or other mortgage-related topics, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at alex@gustancho.com.

This mortgage guide on buying house after selling home with late payments was updated on June 27th, 2022


Similar Posts

3 Comments

  1. Thank You. GOD Bless the Gustancho Mortgage company forever and ever.
    With All my heart,
    Christy

  2. Gustancho mortgage company gives us hope so we can keep trying to make things better. We don’t have to give up when every one else tells us to. Hope gives us strength to pull ourselves back up when all the unfair things are pushing us down.

    1. Thank you, Christy. We are always here to help. Please do not hesitate to email us your contact information if you have any questions or call us at 262-716-8151. Or text me for a faster response. Please visit us at https://www.gustancho.com and scroll down to the footer to RESOURCES. Please read REBUILDING AND REESTABLISHING CREDIT. I personally filed for bankruptcy and I got my credit scores to over 700 in less than one year after the discharged date. Do NOT hire expensive credit repair companies. You do not have to pay outstanding collections or charged off accounts to qualify for government and/or conventional loans. Again, thank you for your kinds words, and am grateful we are able to help. Will be talking with you soon.

      Kind Regards,

      Gustan Cho NMLS 873293

Leave a Reply

Your email address will not be published. Required fields are marked *