Qualifying For Mortgage After Bankruptcy And Foreclosure With No Waiting Period

Mortgage After Bankruptcy And Foreclosure With No Waiting Period

This BLOG On Mortgage After Bankruptcy And Foreclosure With No Waiting Period Was Written By Gustan Cho NMLS 873293

Home buyers can now qualify for 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.

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

Home buyers can qualify for home loans and investment loans after bankruptcy. The most common types of consumer bankruptcy is the following:

  • Chapter 7 Bankruptcy
  • Chapter 13 Bankruptcy

Waiting Period Requirements After Bankruptcy And Foreclosure

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 and 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 conventional loan after the recorded date of 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
  • Jumbo mortgages with 600 FICO 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

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 bankruptcy need to provide the following documents:

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

Motion For Relief From The Stay

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 where 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.

Qualification Requirements

Home buyers can qualify for 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 mortgage after bankruptcy and foreclosure with no waiting period:

  • Qualify for 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 Gustan Cho at 262-878-1965 or text Gustan Cho on his cell at 262-716-8151 or email us at gcho@gustancho.com. We are always available, 7 days a week, weekends, and holidays.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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