Home Loan After Bankruptcy Mortgage Lending Guidelines

This Article Is About Home Loan After Bankruptcy Mortgage Lending Guidelines

Many consumers with prior-aged debts from many years ago have re-established themselves and are now ready to purchase a home. Many now have higher credit scores and have re-established themselves. Borrowers can qualify for mortgages with outstanding collections and charge-off accounts. They do not have to pay outstanding collections and charge-offs to qualify for FHA, VA, USDA, and Conventional Loans. However, there are certain debts such as judgments and tax-liens that will hinder borrowers from qualifying for a mortgage. Borrowers can qualify for a mortgage with outstanding judgments.

Borrowers can also qualify for a mortgage with outstanding tax liens. However, a written payment agreement will be needed, and three months of payment seasoning paid to the judgment creditor and/or Internal Revenue Service. Sometimes filing bankruptcy may be the only option for those with large outstanding judgments A borrower can qualify for a Mortgage After Bankruptcy. However, to qualify for government and conventional Mortgage After Bankruptcy, there are waiting period requirements. There is no waiting period to qualify for Mortgage After Bankruptcy. Homebuyers can qualify for Mortgage After Bankruptcy and Foreclosure with our NON-QM Loan Program.

Government And Conventional Mortgage After Bankruptcy

What does a government and conventional mortgage look like after bankruptcy

Government and Conventional Loans have waiting period requirements to qualify for a mortgage after bankruptcy: Two-year waiting period on FHA and VA Loans to qualifying for Mortgage After Chapter 7 Bankruptcy. Borrowers can qualify for a mortgage during the Chapter 13 Repayment Plan one year after filing on VA and FHA Loans. Borrowers can qualify for conventional loans four years after the Chapter 7 bankruptcy discharged date. Four years waiting period after Chapter 13 Bankruptcy dismissal date. Two years waiting period after Chapter 13 discharge date. Non-QM Loans do not have any waiting period requirements to qualify for a mortgage after bankruptcy and foreclosure.

Will My Employer Find Out About My Bankruptcy Filing?

Will my employer know that I am in bankruptcy?

Many consumers want to keep their bankruptcy filings private. This includes their co-workers and employers. If an individual gets set up with an employer-controlled Chapter 13 Bankruptcy plan, the employer needs to know about the employee’s bankruptcy. This is due to the employer’s requirement to direct a portion of the employee’s wages to the office of the Chapter 13 Bankruptcy Trustee. Payments to the Trustee will be distributed to creditors accordingly by the Trustee. Payroll control is a court order by the federal bankruptcy courts that instructs employers to withhold a percentage of an employee’s wages and forward them to the bankruptcy trustee. If consumer files for Chapter 7 Bankruptcy, employers normally cannot find out because it is not payroll controlled. Bankruptcies are public records so if the employer were to do a national third-party public records search, they can find out. Public records search is common if the employer does a civil/criminal background check. Government employers, mortgage companies, and regulators for licensing often do an extensive public records search. It is best to disclose your bankruptcy if the employer asks. If they do not ask, consumers do not have to volunteer the information.

How long will it take for payroll control to begin?

How long will it take for ​payroll control to begin?

The time it takes for payroll control to start is dependent upon the employer. It normally starts the following pay period after the employer receives the notice. If an employer did not withhold funds did not pay the trustee, the consumer is still liable to make payments to the trustee. If you are having issues with the employer not withholding funds, the employee needs to contact their bankruptcy attorney. It is recommended that consumers enroll in payroll control and not opt-out.

Preparing To Qualify For Mortgage After Bankruptcy

The best way to re-establish credit after bankruptcy is to get three to five secured credit cards. Secured credit cards are the best tool to re-establish credit after bankruptcy and/or foreclosure. I have witnessed countless of consumers have credit scores north of 700 one year after their bankruptcy discharged date due to re-establishing credit with secured credit cards. Credit scores will drop over 100 points when consumers file bankruptcy. However, this is a temporary drop and will increase as the bankruptcy ages. Those who are in a hurry to purchase a home and need to qualify for a mortgage after bankruptcy can qualify with non-QM loans. Contact Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at [email protected]

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