Home Loan With Bad Credit Missouri With No Lender Overlays
This BLOG On Home Loan With Bad Credit Missouri With No Lender Overlays Was UPDATED On January 10th, 2019
Gustan Cho Associates is a five-star national direct mortgage lender with no overlays headquartered in Lombard, Illinois.
- Gustan Cho Associates is headed by CEO Massimo Ressa, CTO Piotr Bieda, and National Managing Director Gustan Cho
- With close in-house processing, operations, support, underwriting, closing & funding departments, Gustan Cho Associates Mortgage Group is one of the fastest-growing direct mortgage banking companies in the U.S.
- There is not a veteran real estate agent in the Chicagoland Area and/or the state of Illinois that has not heard of CEO Massimo Ressa and Gustan Cho Associates Mortgage Group
- The success of Gustan Cho Associates and the reason why they have a national five star reputation is that our CEO and COO is hands-on and knows every single loan officer and borrowers
All of our pre-approvals at Gustan Cho Associates are full TBD Property Underwrite credit approvals signed off by one of our underwriters.
National Five-Star Lender With ZERO Overlays
Majority of lenders have overlays when it comes to credit scores. Mortgage Lender Overlays are lending guidelines imposed by individual lenders that are above and beyond those of government and/or Fannie/Freddie mortgage guidelines:
- FHA only requires a 580 FICO credit score for borrowers to qualify for a 3.5% down payment FHA Loans
- VA does not have any credit score requirements or DTI requirements
- As long as veteran borrowers can get an approve/eligible per Automated Underwriting System Findings we can approve and close borrowers
- In order to get an approve/eligible per AUS, veteran borrowers normally need a 580 credit score and DTI below 60% DTI
Residual income and reserves are normally required to get an approve/eligible per AUS Findings for a veteran with the following:
- Under 620 credit scores
- High debt to income ratio on veteran borrowers with lower credit scores
- Outstanding collections and charge off accounts
- Late payment in the past six months
- Manual underwriting on VA Loans
Agency Guidelines Versus Lender Overlays
However, most lenders can impose their own lender overlays.
- Lender Overlays are internal mortgage lending guidelines that surpass the minimum mortgage lending guidelines
- With regards to credit scores, the majority of FHA Lenders and Missouri VA lenders require higher credit scores than the minimum 580 FICO credit scores mandated by FHA
- VA does not have overlays on Missouri VA Loans
- Majority of mortgage lenders in the state of Missouri have credit score lender overlays of 640 on VA and FHA Loans
- This means that lenders will not accept any mortgage loan applications and qualify any loan applicants with credit scores of under 640 FICO
- There are other Missouri Mortgage Lenders who loosened their credit score lender overlays to 620 FICO
The good news is that Gustan Cho Associates has no overlays on government and conventional loans.
What Types Of People Need Home Loan With Bad Credit Missouri With No Overlays?
Bad credit can affect any type of person. Missouri is one of the hardest-hit states by the Great Recession of 2008. There are many Missouri home buyers who have been struggling to find a lender like The Gustan Cho Team at Loan Cabin Inc. that specializes in Home Loan With Bad Credit Missouri With No Lender Overlays.
Mortgage Lender Overlays are mortgage guidelines that are on top and beyond those required by the following loan programs:
- FHA Loans
- USDA Loans
- VA Loans
- Fannie Mae and/or Freddie Mac Conventional Loans
Gustan Cho Associates at Loan Cabin Inc. are national lenders with no overlays on government and conventional loans.
Who Qualified For Home Loan With Bad Credit Missouri With No Lender Overlays?
I have mortgage loan applicants who are:
- Minimum wage workers
- Blue-collar workers in the state of Missouri
- Missouri white-collar workers
- City, County, State Missouri Police officers
- Missouri Firefighters
- Teachers in Missouri School Districts
- Government and private attorneys
- Construction workers
- Mortgage brokers
- Municipal, County, State, and Federal Judges
- City, County, State College Professors
- Business owners
- Others who have gone through periods of bad credit due to numerous circumstances
Bad credit will follow for anyone who has lost their business, lost their jobs, went through a divorce, had to take a job that they were underemployed, had medical issues, gotten sued, or had other forms of extenuating circumstances.
- Just because a home buyer had periods of bad credit does not mean that they are financially irresponsible
- For example, if those with a career as an engineer for the past 20 plus years making $120,000 and the company shut down and due to the shut down they became unemployed in case scenario where they can have bad credit due to extenuating circumstances
- how are they going to make monthly minimum debt payments?
Unemployment Income And Other Income
Unemployment income is most likely a fraction of those who become unemployed.
- Many companies rather hire a brand new college graduate and offer them an entry-level salary like $30,000 per year than retain an experienced employee
- Even though age discrimination is illegal and against labor laws, age discrimination does exist
- I know of many cases where people went back to school to learn a new trade after becoming unemployed and graduated at the top of their class
But could not get job offers while their younger classmates who had lower grade point averages secured high paying jobs.
Aftermath Of 2008 Great Recession
2008 economic, credit and real estate meltdown has left millions of Americans jobless and most of those who got new jobs found jobs that they were overqualified for and are only making a fraction of what they used to make.
- Plus, those who eventually got jobs, it took them many months or even years to get new jobs
- During the period of unemployment is the time period where they could no longer make their payments and many were forced to file bankruptcy
- They could no longer afford their homes and go through foreclosure, deed in lieu of foreclosure, or short sale
- Many had to live on their credit cards which eventually could not meet their minimum credit card payments and defaulted on their credit cards
- Yet, there are millions of Americans who were drowned with debt that they could not even afford to file bankruptcy
- Most bankruptcies cost over $1,000
- Some could not even have enough money for groceries
- According to statistics, unemployment rates have dropped significantly
- However, this is not the case
- Look around and see how many who had their unemployment run out and have jobs that are not secure or are underemployed
- I know of attorneys, previous business owners, mortgage brokers, realtors, and other professionals who used to make six figures prior to the economic collapse who are working odd jobs and can barely afford groceries and who just gave up on the job market
- Some folks with advanced college degrees even took jobs as manual laborers
- Eventually, everyone recovers and re-establish themselves and live within their means
- People that used to make $150,000 per year may only now make $50,000
- They need to budget their lifestyle and live within the $50,000 salary limits
- That may include downsizing on the home they can live and the areas they can purchase a home
- The good news is that mortgage lenders do understand that people can go through periods of bad credit
- Many lenders cater to folks who have had prior bad credit
Gustan Cho Associates are national lenders with no overlays and cater to Home Loan With Bad Credit.
What Is Bad Credit Mortgage Loan Missouri?
Missouri home buyers qualify for a home loan with bad credit Missouri as long as they have a full time job or stable sourced income that is likely to continue with prior bad credit.
- The key in getting a home loan with bad credit Missouri is that homebuyers could have had a period of bad credit but need to have re-established credit
- Credit scores can be low and borrowers can have outstanding collection accounts and charge offs on credit report but mortgage borrowers need to have re-established credit
- All of the debt payments in the past 12 months needed to have been timely
- Borrowers who have recovered from a period of bad credit but are still continuously late on your payments, they will not qualify for a mortgage loan
- Lenders will review borrowers overall credit history and see periods of bad credit
- They will want letters of explanations of why credit deteriorated during that particular period
- If it was due to a business loss or unemployment, that is a great extenuating circumstance and the mortgage loan underwriter will understand
- However, if borrowers who had solid employment and have just been a habitual late payer throughout an extended period with no good excuse, the mortgage underwriter will just assume that borrower has disregard of credit
The chances of getting a mortgage loan approval will not be good.
Qualifying For Home Loan With Bad Credit Missouri
Missouri Home Buyers who need to qualify for a home loan with bad credit Missouri, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at firstname.lastname@example.org. We are available 7 days a week, evenings, weekends, and holidays.