Mortgage After Bankruptcy in New Hampshire with No Overlays
In this blog, we will discuss and cover qualifying for a mortgage after bankruptcy in New Hampshire. New Hampshire has one of the hottest housing markets in the nation. Many families from high-taxed states such as New York, New Jersey, California, and Illinois are moving to New Hampshire. Home prices are surging in New Hampshire. One of the frequently asked questions Gustan Cho Associates get asked is what are the qualification requirements to qualify for a mortgage after bankruptcy in New Hampshire.
Mortgage After Bankruptcy in New Hampshire After Chapter 7 Discharge
Looking for a Mortgage After Chapter 7 Bankruptcy? For many individuals, filing Chapter 7 Bankruptcy is closing one chapter in life and opening new doors of opportunity. There is a stigma attached to filing and going through a Chapter 7 Bankruptcy. For many, it is a lack of understanding of what drove someone to that point. Individuals may become reluctant to apply for any type of credit after a Chapter 7 Bankruptcy Discharge. This is because they fear rejection and become embarrassed. In this article, we will discuss and cover qualifying for a mortgage after bankruptcy in New Hampshire.
Steps In Qualifying For Mortgage After Bankruptcy in New Hampshire
Many potential home buyers think qualifying for a mortgage after bankruptcy in New Hampshire is not possible so they do not even try. Every loan program has its own waiting period requirements to qualify for a mortgage after bankruptcy. There are two different types of bankruptcy. The qualification requirements for qualifying for a mortgage after bankruptcy in New Hampshire are different after Chapter 7 and Chapter 13.
How Can I Qualify for Mortgage After Bankruptcy in New Hampshire
There are two parts to when qualifying for a mortgage after bankruptcy in New Hampshire. If you just filed Chapter 7 Bankruptcy, there is a two-year waiting period to qualify for an FHA loan after the discharge date. There is a four-year waiting period to qualify for a conventional loan after a Chapter 7 Bankruptcy discharge date. The waiting period is 3 years after the discharge date on USDA loans. If you had a mortgage as part of a Chapter 7 Bankruptcy, there is a three-year waiting period from the recorded date of the housing event on FHA and USDA loans. There is a two-year waiting period after the Chapter 7 Bankruptcy discharged date to qualify for VA loans.
Qualifying for a Mortgage After a Housing Event in New Hampshire
The housing event is the following:
- deed in lieu of foreclosure
- short sale
Mortgage After Bankruptcy in New Hampshire With Prior Mortgage Included In Bankruptcy
There is a mandatory waiting period after the Chapter 7 Bankruptcy discharged date to qualify for FHA, VA, USDA, and conventional loans in New Hampshire. If you had a mortgage included Chapter 7 Bankruptcy, there is a four-year waiting period to qualify for a Conventional loan and VA loan after the discharge date of bankruptcy. The deed of the property that was included in the Chapter 7 Bankruptcy can be recorded after the discharged date of the Chapter 7 Bankruptcy. This rule is different than those of FHA loans, and USDA loans. If the mortgage included in Chapter 7 Bankruptcy was a VA Loan, it may affect VA Entitlement on the new VA Mortgage.
Can A Person Qualify For FHA Chapter 7 Mortgage After Bankruptcy in New Hampshire?
Can a person qualify for an FHA Mortgage After Bankruptcy in New Hampshire? The good news to this question is YES! HUD, The United States Department Of Housing And Urban Development is the parent of the Federal Housing Administration FHA. HUD allows borrowers to obtain a qualified mortgage that is insured by HUD, called FHA Loans, after satisfying a two-year mandatory waiting period after a Chapter 7 Bankruptcy Discharge Date.
Preparing To Buy A Home With An FHA Mortgage After Bankruptcy in New Hampshire
What should I do during the two-year waiting period to prepare myself for a mortgage after Chapter 7 Bankruptcy? A person who has had a prior Chapter 7 Bankruptcy Discharged should make sure that they responsibly rebuild credit. Re-establishing credit should be done immediately after the discharge of the Chapter 7 Bankruptcy. This can be obtained by opening a secured credit card or obtaining an unsecured credit card.
How To Rebuild Credit To Prepare For Mortgage After Bankruptcy in New Hampshire
Obtaining an unsecured credit card right after a Chapter 7 Bankruptcy Discharge will most likely not happen. Most unsecured credit card companies will require a credit score of at least a 700 FICO. However, borrowers can start re-establishing credit by getting secured credit cards. Preferably three to five with at least a $500 credit limit or more.
How Secured Credit Cards Help Rebuild Credit To Qualify For Mortgage After Bankruptcy in New Hampshire
Secured credit cards are the best, easiest and fastest tools in re-establishing credit and improve credit scores after a Chapter 7 Bankruptcy. During this period, consumers should show responsible use of credit. This is easily accomplished by making sure to make regular payments and never being 30 days late. To obtain the highest FICO score advantages, it is important that credit card usage stays under 10% of the credit limit.
Mortgage After Bankruptcy in New Hampshire With Late Payments After Discharged Date
The majority of lenders will not approve anyone for an FHA loan if the borrower has had any late payments after a bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale. This holds true no matter how high their credit scores are. Consumers need to religiously monitor their payment history after a Chapter 7 Bankruptcy Discharge Date. Make sure they do not have any late payments period. There are lenders that will accept one or two late payments after a Chapter 7 Bankruptcy discharge, foreclosure, deed in lieu of foreclosure, or short sale. But the majority of them will require a 7-year waiting period after any late payments after a bankruptcy and/or housing event.
Late Payments After Bankruptcy And Housing Event Is Considered As Second Offender By Most Lenders
It is extremely important that there are not any late payments. It is also important not to have new collections accounts show up after bankruptcy and/or housing event. Filing for bankruptcy can be life-changing and difficult. However, individuals who demonstrate responsible credit use and an established payment history during the two-year waiting period, should not have any issues obtaining a mortgage for a home purchase.
Best Lenders For Mortgage After Bankruptcy in New Hampshire With Lenient Guidelines
Gustan Cho Associates has a national reputation for being able to do loans other lenders cannot do. Over 75% of our borrowers at Gustan Cho Associates are folks who could not qualify at other mortgage companies. We have zero lender overlays on government and conventional loans and have hundreds of non-QM loan products. The team at Gustan Cho is Associates are experts in helping home buyers with less than perfect credit scores and higher debt to income ratios. Gustan Cho Associates specializes in originating, processing, underwriting, and funding FHA, VA, USDA, and Conventional Loans with no overlays Gustan Cho Associates has NO FHA Investor Overlays.
Over 75% of Our Borrowers Are Folks Who Could Not Qualify at Other Lenders
Over 70% of Gustan Cho Associates borrowers are folks who were told that they do not qualify with their lender they went to due to overlays. For example, HUD requires a minimum credit score of 580 FICO to qualify for a 3.5% down payment FHA Loan. However, if a home buyer visits his or her local bank and applies for an FHA loan with a 580 FICO credit score, the banker will tell them that they do not qualify for an FHA loan with them. This is because most banks have FHA Investor Overlays on credit scores where the minimum credit score they require is 640 FICO. The team at Gustan Cho Associates of mortgage loan originators will be able to help borrowers get FHA Loans approved. We are known nationally due to its no lender overlays. Please contact Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at firstname.lastname@example.org if you need to consult with a loan officer with no lender overlays on FHA, VA, USDA, and Conventional Loans.
May 12, 2022 - 6 min read