This ARTICLE Is About Jumbo Loans After Foreclosure With No Waiting Period Requirements
The U.S. Housing Market is booming in the majority of counties in the Nation. Home prices are literally skyrocketing. Both HUD and the FHFA realize this. Many homebuyers are getting priced out of the housing market due to skyrocketing home prices. For the five years, both HUD and the FHFA have raised maximum loan limits on FHA and Conventional Loans. HUD raised FHA Loan Limits for 2021 to $356,362 in regular areas.
High-cost areas have higher FHA and Conforming Loan Limits. The Federal Housing Finance Agency has raised Conforming Loan Limits for 2021 to $548,250. This increase in both FHA and Conforming Loans is the fifth loan increase in the past 5 years. Due to the booming economy and low interest rates, home prices have been skyrocketing. Many homebuyers are stuck at the $548,250 unless they can qualify for Jumbo Loans. Many homes in the market surpass the maximum conforming loan limit so many homebuyers are priced out of the market. A large percentage of homebuyers do not qualify for a Jumbo Loan due to a recent bankruptcy and/or foreclosure.
Gustan Cho Associates offers Jumbo Loans After Foreclosure With No Waiting Period Requirements. Homebuyers can now purchase a higher-end home one day out of foreclosure and qualify for Jumbo Loans After Foreclosure With No Waiting Period Requirements.
Traditional Jumbo Mortgages
Any mortgage that has a higher loan limit than the current conforming loan limit of $548,250 is considered a Jumbo Mortgage. Jumbo Loans are considered riskier loans to lenders. It is considered riskier because it takes a lot more time to liquidate it in the event the house forecloses. Traditional Jumbo Mortgages have higher risks so mortgage rates are higher than government and/or conventional loans.
In addition, lenders have much tougher lending requirements on Jumbo Loans. The down payment requirements are normally higher. The debt-to-income ratio is lower than traditional conforming loans. Credit score requirements are higher. Most banks normally require a credit score higher than 720 FICO for traditional Jumbo mortgages. Most Jumbo lenders will frown upon borrowers with a prior bankruptcy, foreclosure, deed in lieu of foreclosure, and/or a short sale. Most lenders will require a minimum of a seven-year waiting period after foreclosure, deed in lieu of foreclosure, short-sale, bankruptcy. Gustan Cho Associates now offers traditional 90% LTV jumbo mortgages. The maximum debt to income ratio on the 90% LTV jumbo loan is 50% DTI. The minimum credit score for the 10% down payment jumbo loan is 660 FICO. This special jumbo mortgage loan program is a traditional jumbo loan program and NOT a non-QM jumbo mortgage.
Gustan Cho Associates has alternative Jumbo Loans After Foreclosure With No Waiting Period Requirements. These alternative Jumbo Loans After Foreclosure With No Waiting Period Requirements are called Non-QM Jumbo Loans. Gustan Cho Associates has multiple non-QM jumbo loan programs for borrowers who cannot qualify for traditional jumbo mortgages.
Qualification Requirements On Non-QM Jumbo Loans After Foreclosure
There is no set of mortgage guidelines when it comes to Non-QM Mortgages. Non-QM loans are portfolio loans that do not have to abide by Fannie Mae and/or Freddie Mac Agency Mortgage Guidelines. Due to this reason, not all lenders and/or investors of Non-QM mortgages have the same lending credit/income guidelines. Just because one lender says no does not mean another will not approve the borrower.
Gustan Cho Associates has countless investors who portfolio non-QM loans. Over 25% of our business at Gustan Cho Associates are mortgage borrowers who need non-QM loans. Our investors will also negotiate. What this means is our investors often may exceptions to their guidelines with a strong borrower.
In the next paragraph, we will cover and discuss the basic general requirements of Non-QM Jumbo Loans.
General Non-QM Jumbo Loans After Foreclosure Guidelines
In this paragraph, we will cover and discuss the general basic mortgage guidelines on Non-QM loans. Remember, non-QM guidelines are not set in stone. Many lenders will negotiate with a strong borrower who may not meet a particular lending requirement. For example, most non-QM lenders will require 3 credit tradelines that have been seasoned for the past 24 months. However, a borrower who is putting more money down with a great credit score can have that condition waived. Borrowers can qualify for non-QM loans one day out of bankruptcy and/or foreclosure. However, a 30% down payment is required. The higher the layered risk from the lender, the larger the down payment requirement.
Gustan Cho Associates have multiple investors for Non-QM mortgages.
Non-QM Jumbo Loans After Foreclosure Eligibility Requirements
The following are the basic mortgage guidelines on Non-QM loans:
- 10% to 30% down payment on a home purchase
- The amount of the down payment depends on the borrowers’ credit scores and other factors
- Mortgage rates are determined by the borrowers’ credit scores, credit profile, and the down payment
- There is no private mortgage insurance required
- There is no maximum loan limit
- No waiting period after foreclosure, deed in lieu of foreclosure, short-sale, and bankruptcy discharged date
- Late payments in the past 12 months are allowed
Gustan Cho Associates also offers 12 months bank statement mortgages for self-employed borrowers with no income tax returns required. For more information about qualifying for non-QM Jumbo loans, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.
