Home Loan Bad Credit Mississippi With No Lender Overlays

Gustan Cho Associates are experts in helping borrowers qualify for a home loan bad credit Mississippi. People can go through periods of hard times during their lives due to unemployment, loss of business, divorce, death in the family, or extended illness. The coronavirus outbreak in February 2020 has affected many families due to unemployment. Unemployment leads to disruption of income. Most people cannot pay their bills on time with a disruption of income which affects their credit profile. Most people regain employment and re-establish their credit. The team at Gustan Cho Associates are experts in helping people qualify for a home loan bad credit in Mississippi. GCA Mortgage has various loan programs that benefit homebuyers with prior bad credit and lower credit scores.

Qualifying for Home Loan Bad Credit Mississippi and the Housing Market

In this article, we will discuss the following topics:

  • The skyrocketing housing cost of the Mississippi housing market
  • Agency versus lender overlays on government and conventional loans
  • The various loan programs available for first-time homebuyers and borrowers with prior bad credit
  • The reason why over 75% of our borrowers are denied at other lenders

Gustan Cho Associates is a lender with no lender overlays on government and conventional loans.

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FHA Home Loan With Bad Credit Mississippi For First-Time Homebuyers

Not Having Lender Overlays

HUD is the parent of FHA. FHA loans are the best loan program for first-time homebuyers. Borrowers with little to no credit and borrowers with bad credit can qualify for an FHA loan. HUD agency mortgage guidelines allow borrowers with no credit scores to be eligible for FHA loans. Lenders can use non-traditional credit tradelines versus traditional tradelines for borrowers with no credit scores. Borrowers can qualify for a 3.5% down payment home purchase FHA loan in Mississippi with a 3.5% down payment. FHA loans are the best loan program for borrowers who had prior credit issues and lower credit scores. Homebuyers do not have to pay outstanding collections and/or charged-off accounts to qualify for an FHA loan in Mississippi. FHA loans are the easiest loan program to get an approve/eligible per automated underwriting system for borrowers with prior bad credit. a large number of outstanding collections, prior late payments, and higher debt to income ratio. 

Gustan Cho Associates Has A National Reputation of Being Able To Do Loans Other Lenders Cannot

We are experts in originating and funding home loan bad credit in Mississippi. FHA loans are the best loan program for Mississippi homebuyers with lower credit scores. Homebuyers can qualify for an FHA loan with a 3.5% down payment with a 580 credit score. HUD, the parent of FHA loans allows borrowers with credit scores down to a 500 FICO to be eligible for FHA loans. Per HUD agency mortgage guidelines, homebuyers with credit scores between 500 and 579 FICO need a 10% down payment versus the 3.5% down payment on FHA loans.

Gustan Cho Associates Have A National Reputation of Not Having Lender Overlays

Over 75% of our borrowers are folks who could not qualify at other lenders due to their lender overlays. GCA Mortgage Group has zero overlays on FHA, VA, USDA, Conventional Loans. We are also experts in originating and funding alternative loan programs such as non-QM, no-doc home loans, bank statement loans, and asset-depletion loan programs. Gustan Cho Associates are also experts in Jumbo Home Loan Bad Credit Mississippi. We offer non-traditional non-QM jumbo mortgages with credit scores down to 500 FICO in. Mississippi and 16 other states. Gustan Cho Associates Mortgage Group is one of the very few national lenders offering 90% LTV Jumbo Mortgages with no private mortgage insurance.

Buying Your First Home and Qualifying For A Home Loan Bad Credit Mississippi

Mississippi Housing Market is very solid. More home buyers are relocating to Mississippi than any other state. This is due to affordable housing, great climate, growing economy, affordable housing, and low cost of living. Unlike other states like New York, California, Massachusetts, and Connecticut, Mississippi’s population has been growing in the past 5 years. Many New Yorkers are leaving New York to other states with lower taxes. New York lost over 1.4 million residents in the past 10 years. During the same time period, California lost over 1.1 million residents. Homebuyers get a lot of house for the money in Mississippi.

What Experts Say About Mississippi Housing Market

According to Piotr Bieda, Chief Operating Officer of Gustan Cho Associates:

The home building industry has been steady in Mississippi. It is not like the Texas or Dallas market, but our building has been steady. The $200,000 homes, Mississippi home builders can’t build enough of them if you can even build them for $200,000. Smaller homes are in demand. The larger the home is, the more days the house is going to sit on the market. The upside of this is because our pricing on houses is average, not really high like California or other areas. If there is ever a downturn in the market, Mississippi won’t feel the effect as much. We do have a shortage with our starter homes. But, again, you can’t build a $200,000 home in other areas. In California, it might be twice that much for the same home. It is very expensive to live in California. New York is another place the cost of housing is high. Mississippi homeowners are fortunate to live in a state where the housing is more affordable. Homebuyers are looking for amenities and not necessarily square footage. Also, buyers are looking for homes in areas close to community conveniences. Realtors encourage home buyers to search the public websites BuyInMississippi.com and Realtor.com where the active listing information is current and accurate.

Experts in Helping Homebuyers with Home Loan Bad Credit Mississippi

COO Piotr Bieda did not waste any time getting licensed in Mississippi due to its huge potential. Mr. Bieda is the Chief Operating Officer and Gustan Cho Associates is the fastest growing national lender with no overlays in the U.S. Gustan Cho Associates is a correspondent lender, and mortgage broker. We underwrite and fund FHA, VA, USDA, and conventional loans. Mortgage loans that we cannot underwrite and fund in-house, we have the ability to broker them out to wholesale lenders. Gustan Cho Associates has dozens of lending partnerships with wholesale non-QM and specialty mortgage lenders. This is why GCA Mortgage is known as a one-stop mortgage shop. Gustan Cho Associates has a national reputation for being able to do loans other lenders cannot do.

Home Loan Bad Credit Mississippi: Lender Overlays Versus Agency Guidelines

Lender Overlays and Agency Guidelines

All lenders need to follow agency guidelines mandated by FHA, VA, USDA, Fannie Mae, Freddie Mac. However, lenders are allowed to have lender overlays. Mortgage lender overlays are additional lending guidelines implemented by individual lenders. This is why every lender has different FHA, VA, USDA, Conventional Loan requirements. For example, to qualify for a 3.5% down payment FHA Loans, HUD (the parent of FHA) requires 580 FICO. However, banks often require a 640 credit score even though HUD’s minimum requirement is 580. These higher credit score requirements are called lender overlays.

The great news is that Gustan Cho Associates has no overlays on FHA, VA, USDA, Conventional Loans. Due to being a mortgage company licensed in 48  states with no lender overlays, Gustan Cho Associates is the fastest growing lender in the Great State of Mississippi. Contact us at Gustan Cho Associates at 262-716-8151. Text us for a faster response to qualify. Or email us at [email protected] The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays. 

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