How Can I Qualify For Mortgage After Bankruptcy In California?
California is a state where the Great Recession of 2008 really affected its residents hard. Everything in California is expensive, from housing, to fuel costs, taxes, insurance, property taxes, licensing fees, to living expenses. After the Great Recession of 2008, California residents was probably one of the most affected people in the United States, more so than any other states in the nation. Bankruptcy rates in California was one of the highest, if not the highest in the nation. Foreclosure rates in the state of California was one the highest in the nation, if not the highest. Property values in California and housing costs in California is one of the highest in the nation. The real estate crash of 2008 affected millions of homeowners in California and many were forced in bankruptcy and foreclosure. The great news is that California citizens who filed bankruptcy due to the real estate and credit collapse of 2008 can now qualify for a mortgage after bankruptcy in California.
FHA Mortgage After Bankruptcy In California
To qualify for FHA mortgage after bankruptcy in California, there is a mandatory waiting period of 2 years from the discharge date of the Chapter 7 bankruptcy. FHA loan limits in California is much higher than the standard FHA limits of $271,050 in most areas. Many areas of California is considered high cost areas since housing prices in California is one of the highest in the nation. Many parts of California have FHA loan limits of $625,000 which is much higher than the standard conventional loan limits of $417,000. Conventional loan limits are higher in the state of California depending on which county the property is located at. Minimum credit scores to qualify for a FHA mortgage after bankruptcy in California is 580 FICO and the minimum down payment required on a FHA mortgage after bankruptcy in California is 3.5%. For home buyers with credit scores under 580 FICO seeking a mortgage after bankruptcy in California, a 10% down payment is required. If you have any questions or need a pre-approval in all parts of California, please contact me at 262-716-8151 or email me at firstname.lastname@example.org. We are available 7 days a week, including late evenings and holidays.
Conventional Mortgage After Bankruptcy In California
Home buyers can qualify for a conventional mortgage after bankruptcy in California after 4 years from the discharge date of a Chapter 7 bankruptcy. Minimum credit scores to qualify for a conventional mortgage after bankruptcy in California is 620 FICO. If you are a first time home buyer in California or did not own a home in California for the past 3 years, you can qualify for a 3% down payment conventional mortgage after bankruptcy in California. Seasoned home buyers in California will require 5% down payment on a home purchase.
Eligibility For Mortgage After Bankruptcy In California
Besides the minimum credit scores and down payment, there are other eligibility requirements to qualify for mortgage after bankruptcy in California. Whether a home buyer seeks a FHA loan or Conventional loan, most California mortgage lenders will require re-established credit after bankruptcy as well as no late payments after bankruptcy. One or two late payments after bankruptcy may be acceptable with a good solid letter of explanation explaining the extenuating circumstances for the late payment but late payments after bankruptcy are really frowned upon by California mortgage underwriters. Most California mortgage companies expect timely payments and no late payments in the past 12 months. Compensating factors, which are positive favorable factors viewed by underwriters, include reserves and proof of verification of rent.
California Mortgage Lender With No Overlays
If you are looking for a mortgage after bankruptcy in California, look no further. We specialize in home loans with bad credit in California. Over half of our borrowers are mortgage loan applicants who were told by other mortgage companies, banks, and credit unions that they do not qualify for a home loan. We are California mortgage lenders with no investor overlays. As long as you get an automated approval via the Automated Underwriting System and can satisfy the conditions on the DU FINDINGS or LP FINDINGS, that is your final approval. My team of California licensed mortgage loan originators and I are available 7 days a week to issue pre-approvals, including late evenings, weekends, and holidays. Contact us at email@example.com or at 262-716-8151 and visit our website at www.gustancho.com. Minimum credit scores for 3.5% down payment home purchase FHA loans is 580 FICO. Collection accounts do not have to be paid off. Gaps in employment allowed. Non-occupant co-borrowers allowed. 100% gift funds allowed.