In this blog, we will discuss and cover mortgage after foreclosure with no waiting period with non-QM loans. Non-QM loans are alternative mortgage loan programs that do not have to meet government or conforming mortgage loan guidelines. Non-QM loans are portfolio loans. Wholesale non-QM mortgage lenders can set their lending guidelines. Non-QM mortgage lenders can make exceptions with their lending guidelines on a case-by-case basis if the deal makes sense.
The impact of the Great Recession of 2008 is not over for many previous homeowners. In some cases, homeowners with underwater mortgages have foreclosed and 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 a housing event to qualify for mortgages. In the following paragraphs, we will cover qualifying for mortgage after foreclosure with no waiting period with non-QM loans.
When Does The Waiting Period After Foreclosure Start?
The waiting period does not start until the deed has been officially turned over to a new property owner and 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 the sheriff’s sale date.
There are many instances where the homeowners did a deed-in-lieu of foreclosure ten years ago, the property finally got sold, and the lender recently transferred the deed out of their name. This article will cover Mortgage After Foreclosure With No Waiting Period With NON-QM Loans in this article.
Waiting Period Requirements To Qualify For Mortgage After Foreclosure With No Waiting
We all know how housing prices have skyrocketed in the past three years. Home prices nationwide have averaged an increase of 47.5% in the past 36 months. What if you had to wait three to seven years after the date of foreclosure? The chances are you will be priced out of the housing market and unable to buy a home in your lifetime.
With soaring inflation, incompetent politicians, and the Federal Reserve Board increasing rates with no signs of a slowdown, homebuyers can now qualify for non-QM loans. Non-QM mortgage after foreclosure with no waiting period enables homebuyers to purchase a home with no waiting period requirements. Non-QM mortgage after foreclosure with no waiting period does require a 20% down payment. Gustan Cho Associates is a mortgage company licensed in 48 states with no lender overlays on government loans and conventional loans. Gustan Cho Associates is a correspondent mortgage lender on non-QM loans and bank statement loans for self-employed borrowers.
Non-QM Loans One Day Out of Foreclosure
We have a great Mortgage After Foreclosure With No Waiting Period loan program called non-QM loans. Non-QM Home Loans do not have any waiting period requirements to qualify for Mortgage After Foreclosure With No Waiting Period. There is a 10% to 20% down payment required on non-QM loans. No income tax returns are required for self-employed borrowers.
Our bank statement mortgage loan for self-employed borrowers does not require any tax returns, and we go by an average of either 12 months or 24 months of bank statement deposits. Three credit tradelines that have been seasoned for 12 months or two credit tradelines that have been seasoned for 24 months are required. Verification of rent is a must. There is no private mortgage insurance and no maximum loan cap.
What Are Government Loans?
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 ensure and guarantee the lenders on the government loans if the homeowner defaults on their loan. However, lenders need to ensure their borrowers have met the government mortgage guidelines for the mortgage loan to be insurable.
Fannie Mae And Freddie Mac Conventional Loans
Conventional loans are private loans that need to meet Fannie Mae and 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 must wait the following period from the deed transfer date.
Waiting Period After A Housing Event Start Date
The three-year waiting period after the recorded date of foreclosure and deed-in-lieu of foreclosure to qualify for FHA and USDA loans. The three-year waiting period after a short sale date to qualify for FHA and USDA loans. The two-year waiting period to qualify for VA loans after foreclosure, deed-in-lieu of foreclosure, short sale. The four-year waiting period to qualify for Conventional loans after deed-in-lieu of foreclosure and short sale. The seven-year waiting period to qualify for Conventional loans after the recorded date of a 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 lenders offer the Back to Work Extenuating Circumstances due to an Economic Event mortgage program.
To those that do, there were many growing pains. 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 was a great program for those who qualify. Unfortunately, this loan program turned out to be a major disappointment and a HUGE disaster.
Qualifying For A 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 borrower needed to have been unemployed or underemployed for at least six months before the initiation of the economic event.
The economic event is bankruptcy, foreclosure, a deed-in-lieu of foreclosure, or a short sale. The borrower must also show that unemployment or underemployment has caused at least a 20% reduction in household income.
The Reduction In Household Income Is An Extenuating Circumstance
The reduction of household income needs to be verified via income tax returns and W-2s. And paycheck stubs. The 20% reduction in household income is a major factor in qualifying for the Back to Work Extenuating Circumstances mortgage program. I recently denied the Back to Work Extenuating Circumstances where the borrower has qualified for every other aspect where they were unemployed.
The borrowers, in this case scenario did not meet the 20% reduction in income. Borrower needed to not have any late payments after the bankruptcy, foreclosure, deed-in-lieu of foreclosure, or short sale and have re-established credit.
FHA Back to Work Mortgage No Longer Available
To qualify for the Back to Work Extenuating Circumstances mortgage loan program, the borrower needed 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 six months from the issuance date. As mentioned above, the HUD Back To Work Program was a major disaster. HUD discontinued the Back to Work Mortgage one year after it was launched.
Qualifying for Mortgage After Foreclosure With No Waiting Period
Many qualified homebuyers 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 realize this. In August 2013, HUD created the FHA Back To Work Extenuating Circumstances Mortgage Program, which shortened the waiting period to one year after Bankruptcy and Foreclosure. However, this program was 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.
Non-QM Loans Versus The Old FHA Back To Work Mortgage
This Is How The HUD’s FHA Back To Work Mortgage Program Worked. Applicants needed a detailed letter of explanation on the circumstances leading to bankruptcy, foreclosure, a deed-in-lieu of foreclosure, or a short sale. Due to an economic event, the FHA Back to Work Extenuating Circumstances had to do with unemployment or underemployment for at least six months before the bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale.
Reduction of Income
At least a 20% reduction of household income. Provide two years of income tax returns, W-2s, and paycheck stubs to verify that borrowers had a 20% reduction in household income. Tri-merger credit checks to review credit reports and credit scores. The file was processed and submitted to an underwriter for an initial review to see if the borrower qualified for the Back to Work Extenuating Circumstances mortgage program.
HUD-Approved Housing Counseling Course
Applicants needed to sign up for the HUD-approved counseling course. The HUD housing counseling course was needed to start the mortgage process. I needed 30 days from the housing course completion date to start the mortgage process. Many borrowers were issued pre-approvals but very rarely did any of them close.
What Are NON-QM Loans?
Non-QM Home Loans are portfolio loan programs with no waiting period requirements to qualify for home loans after the housing event. Mortgage After Foreclosure With No Waiting Period is now possible with non-QM loans. Gustan Cho Associates are mortgage brokers and correspondent lenders on non-QM loans.
Borrowers can qualify for both purchases and refinance Mortgage After Foreclosure With No Waiting Period with non-QM loans. Borrowers can qualify for non-QM Mortgage After Foreclosure With No Waiting Period one day out of foreclosure, deed-in-lieu of foreclosure, or short sale. A 20% down payment is required.
Benefits of Non-QM Mortgage After Foreclosure With No Waiting Period
Higher credit score borrowers can qualify for non-QM loans with a 10% to 20% down payment. Mortgage interest rates are higher than government and conventional loans. Many homebuyers normally use non-QM loans as bridge loans until they meet the mandatory waiting period to qualify for government and conventional loans.
Borrowers who need to qualify for non-QM loans with a direct mortgage lender with no overlays can contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at email@example.com. Gustan Cho Associates is available seven days a week, evenings, weekends, and holidays.
This BLOG on Mortgage After Foreclosure With No Waiting Period Was UPDATED on December 13th, 2022