Mortgage After Bankruptcy In California Lending Guidelines
This BLOG On How Can I Qualify For Mortgage After Bankruptcy In California Was PUBLISHED On August 22nd, 2019
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, California has one of the highest costs of living than any other state
- 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 were one of the highest, if not the highest in the nation
- Foreclosure rates in the state of California were one the highest in the nation, if not the highest
- Property values in California and housing costs in California are one of the highest in the nation
- The real estate crash of 2008 affected millions of homeowners in California
- 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
In this article, we will cover and discuss Mortgage After Bankruptcy In California Lending Guidelines.
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 $314,827 in most areas
- Many areas of California are considered high-cost areas
- This holds true since housing prices in California is one of the highest in the nation
- Many parts of California have FHA loan limits of $679,650
- This high-cost loan limit is much higher than the standard conventional loan limits of $453,100
- 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 an FHA mortgage after bankruptcy in California is 580
- The minimum down payment required on an FHA mortgage after bankruptcy in California is 3.5%
- For home buyers with credit scores under 580 seeking a mortgage after bankruptcy in California, a 10% down payment is required
- VA and FHA borrowers can qualify for a mortgage after 12 months in their Chapter 13 Bankruptcy repayment plan
- VA and FHA does not have any waiting period requirements after Chapter 13 Bankruptcy discharged date
California home buyers who have any questions or need a pre-approval in all parts of California, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. The Team at Gustan Cho Associates Mortgage Group 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
- First time home buyers in California or who did not own a home in California for the past 3 years 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 an FHA loan or Conventional loan, most lenders will require re-established credit and no late payments after bankruptcy
- One or two late payments after bankruptcy may be acceptable with a good solid letter of explanation
- LOX needs to explain the extenuating circumstances for the late payment
- But late payments after bankruptcy are really frowned upon by all underwriters
- Most 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 with low payment shock
California Mortgage Lender With No Overlays
Home Buyers 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 due to their lender overlays. We are California mortgage lenders with no investor overlays. As long as borrowers get automated approval via the Automated Underwriting System and can satisfy the conditions on the DU FINDINGS or LP FINDINGS, that is the final approval. The Team at Gustan Cho Associates Mortgage Group in California are available 7 days a week to issue pre-approvals, including late evenings, weekends, and holidays. Contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Minimum credit scores for 3.5% down payment home purchase FHA loans is 580.
- Collection accounts do not have to be paid off
- Gaps in employment allowed
- Non-occupant co-borrowers allowed
- 100% gift funds allowed