Mortgage After Foreclosure With No Waiting Period With NON-QM Loans

Mortgage After Foreclosure With No Waiting Period With NON-QM Loans

This BLOG On Mortgage After Foreclosure With No Waiting Period With NON-QM Loans Was UPDATED On January 30th, 2018

The impact of the Great Recession of 2008 is not over to many previous homeowners.

  • There are cases where homeowners with underwater mortgages have foreclosed and or did a deed in lieu of foreclosure and the deed to the property is still under their name
  • Government and Conventional Loans require a mandatory waiting period after housing event in order to qualify for mortgages
  • The waiting period does not start until the deed has been officially turned over to a new property owner and/or lender
  • Someone who had a deed in lieu of foreclosure in 2008 will not qualify for a new loan until they have met the mandatory waiting period after the recorded deed has been transferred out of their name and/or date of the sheriff’s sale
  • There are many instances where the homeowners did a deed in lieu of foreclosure 10 years ago and the property finally got sold and/or the lender transferred the deed out of their name recently

Waiting Period Requirements To Qualify For Mortgage After Housing Event

The Gustan Cho Team at USA Mortgage, a division of DAS Acquisition Company LLC NMLS 227262, is a direct lender with no mortgage overlays on government loans and conventional loans.

  • USA Mortgage is also correspondent mortgage lenders on non-qm loans and bank statement loans for self employed borrowers
  • We have a great Mortgage After Foreclosure With No Waiting Period loan program called non-qm loans
  • Non-QM Home Loans does not have any waiting period requirements to qualify for Mortgage After Foreclosure With No Waiting Period
  • Our bank statement mortgage loan for self employed borrowers does not require any tax returns and we go by average of 24 months bank statement deposits

Government Loans are the following:

  • FHA Loans
  • VA Loans
  • USDA Loans

Government Loans are loans that are originated and funded by banks and private mortgage banking companies.

  • The above government agencies will insure and guarantee the lenders on the government loans in the event if the homeowners defaults on their loan
  • However, lenders need to make sure that their borrowers has met the government mortgage guidelines in order for the mortgage loan to be insurable

Fannie Mae And Freddie Mac

  • Conventional Loans are private loans that need to meet Fannie Mae and/or Freddie Mac Mortgage Guidelines
  • It is often called conforming loans because they need to conform to Fannie Mae and Freddie Mac guidelines

Mortgage After Foreclosure With No Waiting Period

This person needs to wait the following waiting period from the deed transfer date:

  • Three year waiting period after recorded date of foreclosure and/or deed in lieu of foreclosure to qualify for FHA Loans and USDA Home Loans
  • Three year waiting period after short sale date to qualify for FHA and USDA Loans
  • Two year waiting period to qualify for VA Loans after foreclosure, deed in lieu of foreclosure, short sale
  • Four year waiting period to qualify for Conventional Loans after deed in lieu of foreclosure and/or short sale
  • Seven year waiting period to qualify for Conventional Loans after recorded date of standard foreclosure

Date Of Foreclosure Versus Recorded Date In Public Records

HUD’s new FHA Back to Work Extenuating Circumstances due to an economic event was launched last August 15, 2013 and shortens the waiting period for those who filed bankruptcy or had a foreclosure, deed in lieu of foreclosure, or short sale to a one year waiting period.

  • Not too many residential mortgage lenders offer the Back to Work Extenuating Circumstances due to an Economic Event mortgage program but to those that do, there were many growing pains
  • It seems like most Back to Work Extenuating Circumstances mortgage lenders now have fine tuned this program
  • The Back to Work Extenuating Circumstances one year waiting period after an economic event is a great program for those who qualify

Mortgage After Foreclosure With No Waiting Period

To qualify for the HUD’s new FHA Back to Work Extenuating Circumstances one year waiting period after a bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale, the mortgage loan borrower needs to have been unemployed or underemployed for at least six months prior to the initiation of the economic event.

  • The economic event is the bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale
  • The mortgage loan borrower also need to show that the unemployment or underemployment have caused at least a 20% reduction of household income
  • The reduction of household income needs to be verified via income tax returns, W-2s. and/or paycheck stubs
  • The 20% reduction of household income is a major factor in qualifying for the Back to Work Extenuating Circumstances mortgage program
  • I had a recent denial of the Back to Work Extenuating Circumstances where the mortgage loan borrower has qualified for every other aspect where they were unemployed but did not meet the 20% reduction in income
  • The mortgage loan borrower needs to not have any late payments after the bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale and have re-established credit
  • To qualify for the Back to Work Extenuating Circumstances mortgage loan program, the mortgage loan borrower needs to complete a HUD approved housing course and cannot apply for an official mortgage loan after 30 days from the issuance of the housing certificate
  • The HUD approved housing certificate is good for a period of 6 months from the issuance date

Qualifying Mortgage After Foreclosure

There are many qualified home buyers who are ready to purchase a home. Many home buyers had a prior foreclosure many years ago but the deed was not transferred out of their names until recently. The government, Fannie Mae, and Freddie Mac realizes this. Back in August 2013, HUD created the FHA Back To Work Extenuating Circumstances Mortgage Program where it shortened the waiting period to one year after Bankruptcy and Foreclosure. However, this program turned out to be a major disaster and most mortgage companies did not touch this loan program. The program has been discontinued. However, we like to cover the FHA Back To Work Mortgage Program on this blog.

This Is How The HUD’s FHA Back To Work Mortgage Program Worked:

  • Applicants needed detailed letter of explanation on the circumstances leading to bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale
  • FHA Back to Work Extenuating Circumstances due to an economic event had to do with unemployment or underemployment for at least six months prior to bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale
  • At least a 20% reduction of household income
  • Provide two years of income tax returns, W-2s, and/or pay check stubs to verify that borrowers had 20% reduction of household income
  • Tri-merger credit check to review credit report and credit scores
  • File was processed and submitted to an underwriter for an initial review to see if borrower qualified for the Back to Work Extenuating Circumstances mortgage program
  • Applicants needed to sign up for the HUD approved counseling course
  • The HUD housing counseling course was needed to start mortgage process
  • Needed a waiting period of 30 days from housing course completion date to start mortgage process

Many borrowers were issued pre-approvals but very rarely did any of them closed.

What Are NON-QM Loans?

Non-QM Home Loans are portfolio loan programs where their is no waiting period requirements after housing event to qualify for home loans.

  • The Gustan Cho Team at USA Mortgage are correspondent lenders on non-qm loans
  • Mortgage Borrowers can qualify for both purchase and refinance mortgage loans with non-qm loans
  • Borrowers can qualify for non-qm loans one day out of foreclosure, deed in lieu of foreclosure, short sale. 20% down payment is required
  • Higher credit score borrowers can qualify for non-qm loans with 10% down payment
  • Mortgage interest rates are higher than government and conventional loans
  • Many home buyers normally use non-qm loans as a bridge loan until they meet the mandatory waiting period to qualify for government and/or conventional loans

Borrowers who need to qualify for non-qm loans with a direct mortgage lender with no overlays can contact us at The Gustan Cho Team at USA Mortgage at 262-716-8151 or email us at gcho@usa-mortgage.com. We are available 7 days a week, evenings, weekends, and holidays.

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