Mortgage After Bankruptcy And Foreclosure With No Waiting Period

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This BLOG On Mortgage After Bankruptcy And Foreclosure With No Waiting Period Was UPDATED And PUBLISHED On February 2nd, 2020

What does a mortgage look like after bankruptcy and exclusion without a waiting period

Homebuyers can now qualify for a mortgage after bankruptcy and foreclosure with no waiting period with NON-QM Loans.

  • New NON-QM and Alternative Financing loan programs are now available for owner and non-owner occupied properties
  • There are investment loan programs now available where tax returns and income of borrowers are not required

In this article, we will discuss and cover Mortgage After Bankruptcy And Foreclosure With No Waiting Period.

NON-QM and Investment Property Loans

NON-QM Loans are where owner occupant borrowers can qualify for Mortgage After Bankruptcy And Foreclosure With No Waiting Period.

There are various types of NON-QM Loans:

  • Mortgage After Bankruptcy And Foreclosure With No Waiting Period
  • Bank Statement Mortgage Loans
  • Asset Based Loans

Impact Of Bankruptcy & Foreclosures In Qualifying For Home Loans

Homebuyers can qualify for home loans and investment loans after bankruptcy.

The most common types of consumer bankruptcy are the following:

  • Chapter 7 Bankruptcy
  • Chapter 13 Bankruptcy

Waiting Period Requirements After Bankruptcy And Foreclosure

What are the requirements for the waiting period after bankruptcy and exclusion

Until the launch of NON-QM Loans and Alternative Financing loan programs, the only way to get qualified for a home loan after bankruptcy and foreclosure was to meet the waiting period after bankruptcy and foreclosure.

Here are the waiting period requirements after bankruptcy to qualify for VA and FHA Loans and Conventional Loans:

  • Waiting Period After Chapter 7 Bankruptcy discharge is 2 year on FHA and VA Loans
  • 4 years on Conventional Loans
  • There is no waiting period after Chapter 13 Bankruptcy discharged date to qualify for VA and FHA Loans
  • There is a two year waiting period after Chapter 13 Bankruptcy discharged date to qualify for Conventional Loans
  • Consumers one year into a Chapter 13 Bankruptcy repayment plan can qualify for VA and FHA Loans with the approval of Trustee
  • There is a four-year waiting period to qualify for a conforming conventional loan after Chapter 7 Bankruptcy discharged date
  • There is a four-year waiting period to qualify for conventional loans after the recorded date of a deed in lieu and/or short sale
  • There is a seven-year waiting period to qualify for a conventional loan after the recorded date of the foreclosure

NON-QM Loans

NON-QM Loans are alternative finance loan programs where borrowers with prior bankruptcy and foreclosure and self-employed borrowers can qualify for home loans via non-conforming loan programs.

Here are the non-QM loan programs Gustan Cho Associates offers:

  • Owner-occupied and non-owner owner-occupied loan programs
  • No waiting period after bankruptcy and foreclosure
  • Bank Statement Mortgage Loans for self-employed borrowers
  • Gustan Cho Associates at Loan Cabin Inc. offers 95% LTV Jumbo Mortgages With No Mortgage Insurance
  • Jumbo mortgages with 500 credit scores
  • Fix and Flip Loans with 15% down payment plus 90 LTV construction financing with no tax returns and income verification required
  • Investment property loans with no income verification and no tax return required

Blanket line of credit with no income verification on 7 or more investment units.

Qualifying For Mortgage After Bankruptcy And Foreclosure With No Waiting Period

Consumers can now qualify for a home loan after filing bankruptcy.

  • Bankruptcy And Qualifying For Mortgage often depends on the individual’s credit scores and the amount of down payment
  • Under the United States Bankruptcy Code, a consumer filing for bankruptcy needs to enroll and finish an approved credit counseling course

In addition to completing the credit counseling course, those filing bankruptcies need to provide the following documents:

  • Two years of income tax returns
  • Two years W2s
  • Upon the completion of credit counseling course and along with paycheck stubs and tax returns, bankruptcy petitioners are eligible to file bankruptcy
  • Upon receiving the above documents, the bankruptcy attorney of the petitioner can file the bankruptcy petition
  • In the event of urgency, an emergency bankruptcy petition can be filed

Motion For Relief From The Stay

What does the application for release from residence mean?

A motion for relief from the automatic stay is what creditors file to get approval from the U.S. Bankruptcy Courts to reinstate foreclosure proceedings and/or proceeding with a vehicle repossession process.

  • Consumers filing Chapter 7 where they are surrendering their vehicles and/or home, the bank is allowed to file a relief motion from the automatic stay
  • They are able to legally continue the repossession of an auto and/or foreclosure proceeding of a home

Consumers filing Chapter 13 Bankruptcy and intending on keeping their vehicles and/or home, the bankruptcy attorney will propose a restructuring plan of their debts and repayment proposal for the Bankruptcy Trustee.

Qualifying For Mortgage After Bankruptcy And Foreclosure With No Waiting Period

Homebuyers can qualify for a mortgage after bankruptcy and foreclosure with no waiting period at Gustan Cho Associates. There are full doc and no doc loan programs for both owner occupant and non-owner occupant properties.

Here are the basic qualification requirements on qualifying for a mortgage after bankruptcy and foreclosure with no waiting period:

  • Qualify for a home loan or investment home loan one day after bankruptcy and/or foreclosure
  • 10% to 20% down payment:
    • Down payment depends on borrower’s credit scores
  • Investment property loans with no income verification:
    • No tax returns required
  • Blanket investment property lines of credit available
  • Bank statement mortgage loans

Borrowers interested in NON-QM Loans and alternative financing, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@gustancho.com. We are always available, 7 days a week, weekends, and holidays.

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